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Banking & Finance

Hoan My Medical issues fixed rate bonds

Released at: 17:06, 10/10/2018

Hoan My Medical issues fixed rate bonds

Photo: Hoan My

$100-million dual-tranche bonds guaranteed by ADB's CGIF and placed through Standard Chartered Vietnam.

by Hong Nhung

Standard Chartered Bank Vietnam announced on October 8 a placement for Hoan My Medical Corporation to inaugurate $100-million dual-tranche fixed rate bonds. The issuance was guaranteed by Credit Guarantee and Investment Facility (CGIF), a trust fund of the Asian Development Bank rated AA internationally by S&P.

Hoan My is the leading and largest private hospital network in Vietnam by number of hospitals and operating beds. With 14 hospitals and six clinics, it serves more than 3 million patients annually, providing affordable, high-quality healthcare to the people of Vietnam.

SCB Vietnam’s expertise in local currency bond origination in Vietnam has enabled Hoan My to achieve its objectives of a dual-tranche issuance, locking in fixed-rate long-term funding at competitive yields. This is the fifth time SCB Vietnam has acted as the Bond Issuance Agent for a guaranteed VND-denominated corporate bond issue.

“We are delighted to partner with CGIF on the first bond issuance out of the healthcare industry in Vietnam,” said Mr. Huynh Le Duc, CEO of Hoan My. “This issuance enables us to tap into capital markets for fixed-rate long-term funding, which better suits the nature of our business. This will allow us to grow and invest in our healthcare services across Vietnam and further our mission of helping more people to live healthier and more prosperous lives.”

“We are pleased to arrange the first healthcare bond for the healthcare industry in Vietnam, for Hoan My,” said Mr. Nirukt Sapru, CEO Vietnam and ASEAN & South Asia Cluster Markets at Standard Chartered Bank. “We have achieved this bond issuance with the support of CGIF, a trusted partner in Vietnam. We are honored to be able to play a part in the growth of the local capital market, which offers an alternative avenue of funding for both listed and private companies in Vietnam.”

“We are grateful to anchor another successful landmark bond issuance this year in Vietnam, and even more delighted this time as we have not only successfully mobilized savings to match the funding requirements of a first-time issuer, but also introduced a first-time issuer from a private and unlisted group in Vietnam to the capital markets,” said Mr. Kiyoshi Nishimura, CEO of CGIF.

“The success of this first healthcare bond is a reflection that the VND bond markets is ready and can play an important role in funding private healthcare businesses towards better accessibility, quality and affordable healthcare services for the Vietnamese people.”

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