GuarantCo guarantees VND 660 billion Nam Long Investment Corporation bond
GuarantCo has signed a deal with Nam Long Investment Corporation (Nam Long) an affordable housing developer based in Vietnam.
Nam Long has issued a seven year guaranteed corporate bond of VND 660 billion due in 2025. This is the first guaranteed bond for Nam Long and the first deal in Vietnam for GuarantCo.
Through PIDG company GuarantCo’s support, Nam Long has been able to tap into a new source of long-term funding from the local institutional investors through the issuance of this bond. This will enable Nam Long to be better placed in continuing to support the affordable housing market in Vietnam.
The Nam Long affordable housing project is the first urban infrastructure initiative for GuarantCo in south east Asia. GuarantCo is also supporting affordable housing projects in India and Nigeria with a number of others in the pipeline.
“The development of the affordable housing industry in Vietnam is something that is very close to our hearts and we are excited to find a partner in GuarantCo on our first guaranteed local currency bond issue,” said Steven Chu, CEO of Nam Long Investment Corporation. “We are able to garner strong participation from reputable and well-recognised investors at a competitive long-term fixed interest rate which enables us to deploy the funds accordingly to finance our capital expenditure and land banking needs to further grow the company.”
“We are proud to collaborate with Nam Long Investment Corporation which, over the years, has been an active real estate developer focused on the affordable housing sector in Vietnam,” said Lasitha Perera, CEO of GuarantCo. “The bond proceeds will be used primarily towards infrastructure associated with affordable housing and is expected to create peak employment of up to 300 jobs at the construction site. The longer-term goal is to enable Nam Long to provide more supply of affordable housing in Vietnam and to support the development of the local debt capital markets further.”