a seven-year guaranteed corporate bond of $29 m due in 2025
8,000 new homes over the next ten years
In Vietnam, the need for affordable housing is set to grow in the coming years as a result of increased demand due to urbanisation and the desire to improve living conditions. In Ho Chi Minh City alone, the rate of urbanisation is around 3.4 percent per year i.e. 340,000 people. This translates into 25,000 new housing units which need to be built annually to support this demand.
GuarantCo is committed to develop the local corporate debt capital market further. The company hopes that this issuance will act as a catalyst to encourage potential corporate issuers looking to secure long-term funding for infrastructure related initiatives to consider the same approach.
The proceeds from the bond will be used primarily towards the development of core infrastructure for Nam Long’s flagship township development project in Long An province which is located approximately 35km southwest from the central business district area of Ho Chi Minh City.
Development of the core infrastructure works will create an additional 300 jobs at the construction site. The project is aiming to deliver up to 8,000 homes over the next ten years and will contribute to the development of more satellite towns in and around Ho Chi Minh City to increase access to affordable housing for a better quality of living.
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