23:58 (GMT +7) - Monday 01/06/2020


ABA sells $6mn in bonds to Vietnam Holding

Released at: 18:44, 13/08/2019

ABA sells $6mn in bonds to Vietnam Holding

Photo: ABA Cooltrans

Sale to fund expansion of ABA's cold chain logistics solutions in Vietnam.

by Doanh Doanh

The ABA Trading Solutions JSC (ABA Cooltrans) has officially announced the completion of an issuance of VND139.8 billion ($6 million) in convertible bonds to Vietnam Holding Limited, to expand its cold chain logistics solutions in Vietnam.

“ABA’s growth has been directly linked to increasing demand for fresh and safe food among Vietnamese consumers,” said Mr. Luong Quang Thi, Founder and CEO of ABA. “Controlling temperatures throughout the entire supply chain requires much greater investment for cold supply chains than investing in conventional supply chains. Therefore, with the investment from Vietnam Holding, we can reinforce our facilities, trucking, and warehousing into a complete supply chain, and in particular develop our information technology system, training, and resource management, as well as build a corporate culture focused on our clients and the quality of their products.”

Established in 2008, ABA Cooltrans is currently the leading provider of services and solutions in Vietnam’s integrated cold supply chain.

It owns nearly 300 refrigerated trucks and 40,000 cold storage locations in Hanoi and Ho Chi Minh City and aims to be the first and only standard cold chain logistics provider in Vietnam offering modern retailers and suppliers a one-stop shop for temperature-controlled logistics.

ABA’s clients include large modern retailers such as VinMart, Bach Hoa Xanh, and Big C, as well as suppliers providing meat, dairy products, and fresh produce, such as Masan Nutri-Science, Bel Vietnam, and Unilever.

It has appointed Mr. William O’Brien to its Board of Directors as an independent industry expert. Mr. O’Brien has over 20 years of experience in the cold chain logistics business and was formerly President of HAVI Logistics in Asia. His experience will enable ABA to apply and deploy best practices in the industry into its daily operations. “This is an important milestone for our team in realizing ABA Cooltrans’ vision to 2023,” Mr. Thi added.

“Vietnam Holding, managed by Dynam Capital, has invested significantly in the consumer retail and logistics space in Vietnam,” said Mr. Vu Quang Thinh, CEO of Dynam Vietnam. “As the modern trade portion of the market grows in Vietnam, ensuring food safety and quality across the ‘farm to fork’ chain becomes increasingly important. We think ABA has strong potential to be the leading player in cold chain logistics in the country and are delighted to partner with Mr. Thi.”

Dynam Capital is the investment manager of Vietnam Holding Limited (VNH), an investment fund listed on the London Stock Exchange.

VNH has been investing in Vietnam since 2006 and has significant investments in FPT, Phu Nhuan Jewelry, Saigon Cargo Services, Mobile World Group, and MB Bank. It has a long history of outperformance and its year-to-date estimated Net Asset Value (NAV) per share as at August 9 has increased 5.62 per cent since the beginning of January, outperforming the Vietnam All-Share Index (VNAS), which rose 4.45 per cent in the same period.

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