Vingroup Bolsters Financial Position, Plans Capital Raise and Debt Restructuring
Vingroup, Vietnam's largest private conglomerate, is bolstering its financial position as it expands into diverse sectors. The company is raising capital and restructuring debt, while its chairman, Phạm Nhật Vượng, transfers shares among his businesses.
Vingroup, with interests in real estate, retail, healthcare, and electric vehicles through VinFast, is strengthening its balance sheet. It plans to issue VND2.5 trillion ($94.7 million) in bonds for debt restructuring. These bonds, with a par value of VND100 million ($3,790) each and a maximum term of 24 months, are non-convertible, non-warranted, and secured by assets.
In a separate move, Vingroup JSC will issue VND3.5 trillion ($132.5 million) worth of bonds to further manage its debt. Meanwhile, Phạm Nhật Vượng, the controlling shareholder, has transferred over 70.6 million VIC shares to VinEnergo, an energy firm he controls. Another transfer of nearly 87.6 million VIC shares to infrastructure developer VinSpeed is scheduled for June 24 to July 23, 2025. VIC shares closed down 2.8% to VND170,000 ($6.44) each on Wednesday.
Vingroup's capital raise and debt restructuring indicate its commitment to growth and expansion. The share transfers by Phạm Nhật Vượng suggest strategic planning within his business empire. Market response to these developments is being closely watched.
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