Masan Group mobilizes $650mln in foreign capital

The Board of Directors at the Masan Group has approved the signing of credit contracts with a group of foreign banks, including BNP Paribas, Credit Suisse, Standard Chartered Bank, HSBC, UOB, and other institutions to borrow an initial $83 million with an option to increase the loan to a maximum of $225 million.

Masan also approved the signing of a guaranteed contract with BNP Paribas that ensures payment obligations for The Sherpa Co., Ltd., a member of Masan. The guaranteed agreement relates to a credit contract Sherpa signed with foreign banks to borrow an initial $292 million with the option to increase the loan by up to $50 million.

The total value of the two loans is a maximum $650 million. The first is a five-year foreign syndicated capital mobilization with the largest value ever in Vietnam’s private sector. The USD loan bears an interest rate of 2.9 per cent plus the SOFR reference rate, which equates to 6.7 per cent per annum.

In the context of the domestic capital market facing many difficulties, Masan is continually promoting capital mobilization in the international market. At the end of 2022, the group also received successful disbursement of $600 million in international capital arranged by BNP Paribas, Credit Suisse, HSBC, and Standard Chartered Bank. The transaction was underwritten and attracted 37 international financial institutions to oversubscribe.

Masan posted net revenue in 2022 of $3.2 billion, down 14 per cent year-on-year. After-tax profit stood at $177.1 million, down 53 per cent. On that basis, Masan aims to post revenue of $3.8-4.2 billion in 2023, an increase of 18-31 per cent compared to 2022.