HSBC Arranges World’s First Exchangeable Sustainable Bond for Vinpearl JSC

Category: News / Date: 09/29/2021
    HSBC acted as Sole Sustainability Structuring Bank, Joint Book-runner and Joint Lead Manager for the US$425 million Exchangeable Sustainable Bond (ESB) offering by Vinpearl Joint Stock Company (‘Vinpearl’), into shares of Vingroup Joint Stock Company (‘Vingroup’). The bonds mature in 2026 and have a 3.25% coupon.
    Vinpearl is a subsidiary of Vingroup and a leading hospitality developer and operator which currently develops and operates 35 hotels and resorts, six amusement parks, and four golf courses in 16 major cities and popular tourist destinations in Vietnam.
    As Sole Sustainability Structuring Bank, HSBC supported Vingroup in developing its inaugural Sustainable Finance Framework (the “Framework”), which includes six green and two social project categories across Vingroup’s business segments. Potential project categories include clean transportation, green buildings, sustainable water and wastewater management, pollution prevention and control, energy efficiency, renewable energy, access to essential services – healthcare and affordable housing. The Framework received a Second-Party Opinion from Sustainalytics, a leading company that rates the sustainability of listed companies based on their environmental, social and corporate governance performance, which is of the opinion that the Framework is credible and impactful.
    This is the world’s first-ever Exchangeable Sustainable Bond, a key milestone for Asian corporates in demonstrating their commitment to sustainable financing. The deal was launched and priced on 15 September 2021, attracting investors’ interest from all over the globe, with over 40 investors participating. Final deal size was set at USD425 million, being upsized from the initial base offer of USD400 million.
    Mr. Nguyen Viet Quang, Vice Chairman cum Chief Executive Officer of Vingroup, said “The oversubscription in Vinpearl’s exchangeable sustainable bonds demonstrates investor’s positive reception for an innovative structure that Vingroup and its member companies have pioneered. The transaction also affirms the potential and credit strengths of the Vingroup ecosystem, as well as Vietnam’s position in the international capital market.”
    Tim Evans, CEO of HSBC Vietnam, said “Vingroup is one of the most successful stories coming out of Vietnam. Their amazing growth and innovative mind have laid the foundation for this key cooperation between us to introduce the world’s first Exchangeable Sustainable Bond, which will contribute to both organisations’ green agenda locally and globally. The deal, once again, reaffirms HSBC’s commitment to accompanying with corporates to mark Vietnam on the world economic map and build the ‘Vietnam’ brand with international investors.”
    This ESB is also the second equity-linked offering by Vingroup in 2021, following the successful US$500 million Vingroup Exchangeable Bond offering into shares of Vinhomes, also led by HSBC. Together with other green financing deals arranged for Vietnam-based clients over the past two years, this ESB once again confirms HSBC’s ESG financing leadership in Vietnam.
    HSBC has been the most active Asian equity-linked house since the beginning of summer, having now led the last four primary transactions priced in the market, reinforcing its leadership in accessing liquidity and driving the best pricing outcomes for clients. Inclusive of this deal, HSBC maintains a 100% market share in ESG equity-linked financing in Asia, having executed all such transactions launched in the market since 2019.
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