Week 22/08 – 26/08

KDH VN

BoD has approved the plan to issue VND800bn worth of 3-year unsecured non-convertible bonds without warrants via private placement. Par value will be VND1bn apiece with the fixed rate of 12%/year (interests will be paid semi-annually). The issuance is expected in 3Q22 at the latest. KDH plans to use all proceeds to increase the charter capital of its subsidiary International Consultant Co. Ltd (of which KDH owns 99.952% charter capital) from VND750bn to VND1.55trl. International Consultant Co. Ltd will use these additional capitals to increase the charter capital of its subsidiary Binh Trung Real Estate Investment Trading Co. Ltd to VND1.66trl (of which International Consultant Co. Ltd owns 99.948%).

Comment: Just look at the rates that are being paid by this real estate player, however take into account domestic rates in VN are …. 8-10% for a mortgage…and these are unsecured…

MSN VN

The Sherpa Co. which is MSN’s unit, acquired additional 10.8m shares (equivalent to 34% stake) of Phuc Long Heritage for VND3.62trl on Aug 01, it said in the 1H report reviewed by auditors. Transaction increases MSN’s holding in the food and beverage firm to 85% from 51%. In Jan, The Sherpa spent VND2.49trl for an additional 31% stake in Phuc Long Heritage, raising ownership to 51%, MSN says in the same report.

Comment: This is a group that seems hellbent on overtaking the size of Vin Group and destroying MWG. Can they? I don’t know, the #’s appear ok, but there are lots of moving parts. I do like how well-integrated they are from farm to store which gives them a cost and supply chain advantage over MWG.

VPB VN

On Aug 18, The State Bank of Vietnam approved VPB’s plan to increase its charter capital by max VND22.4trl via issuing bonus shares. No further information has been provided yet.

VPB has re-appointed Mr. Nguyen Duc Vinh as CEO for the third 5-year term (2022-2027). The decision has been effective from Aug 19

Comment: A positive that the same CEO is still there during this period and he’s been there since before the IPO. All eyes on the credit quota increase for VPB post the zero-dong bad bank “acquisition”