Vingroup high-yield bond sets SE Asia PE precedent

Author: Ashley Lee | Published: 13 Nov 2013
  • Vingroup’s $200 million USD-denominated high-yield bond offering marked the company’s debut in the international bond markets. It was also the first Vietnamese issuer in the high-yield market this year;
  • But its covenant package was structured around a $200 million Warburg Pincus investment into Vingroup’s retail subsidiary;
  • Carve-outs to its covenant package also had to take the quirks of Vietnam’s business environment into account.

Vietnam real estate conglomerate Vingroup’s debut in the international dollar bond markets was only the second-ever corporate high-yield bond out of Vietnam. But its covenant package required adjustment due to a private equity investment earlier this year.

Vietnam’s macroeconomic issues made headlines this year, but private equity firms have looked to its real estate and consumer sectors. In January, Kohlberg Kravis...