Bonds totalling $4.3 million issued as part of lender’s long-term capital strategy.
F88 has successfully issued corporate bonds totalling VND100 billion ($4.3 million) after just two weeks of being offered.
The non-convertible bonds have a term of two years, a fixed interest rate, and are paid in dong (VND). Buyers were primarily reputable large domestic institutions and some individual investors.
The bond issuance was advised on by the Bao Viet Securities JSC (BVSC), a leader in issuing and managing risk in Vietnam’s financial market.
Phung Anh Tuan, Chair and CEO of F88, said mobilising capital in the domestic bond market is part of the company’s long-term capital strategy, with it applying successful lessons from leading mortgage companies in the US (First Cash), Thailand (Srisawad), and Singapore (Maxicash). “This successful bond issuance helps F88 supplement necessary capital to meet growth in mortgage lending,” he added. “The result confirms the interest of investors in the company’s efficiency and reputation.”
As at June 30, F88 was the leading company in the market, possessing an impressive financial services chain. Its transaction offices around the country have risen to 84nearly double that in 2018of which 41 are in Hanoi, 38 in HCM City, and five in northern provinces.
F88 is expected to reach its target of 100 transaction offices this year and 300 by 2021. It will continue to expand channels for domestic and foreign capital mobilisation, including the corporate bond issuance.
Unlike other business models in the field of finance, F88 is a pioneer in asset mortgage lending, ensuring fast, friendly, safe and confidential products, including lending with motor cars, motorbikes, phones, and computers pledged as collateral.
F88 is also actively investing in its technology network to conduct asset valuations and risk management in the best possible manner. It currently uses an ERP system and Business Intelligence (BI) to have information transmitted immediately and accurately and focuses on key measurement indicators to support and make business decisions.
http://vneconomictimes.com/article/banking-finance/f88-issues-corporate-bonds
