BIM Land’s real estate ambitions raise $200 million with SGX debut
BIM Land JSC, a member of BIM Group, has successfully priced its inaugural US dollar bond for 5-year maturity at 7.375 per cent coupon to be listed on the Singapore Stock Exchange (SGX), with the transaction marking the first offshore bond offering by a Vietnamese issuer since 2019 and the first corporate green bond out of the country.
The Reg S only, senior unsecured notes have a rating of B2 by Moody’s and B by Fitch, in line with BIM Land’s issuer ratings.
The debut bond issuance of BIM Land on April 29 attracted interest from a wide range of investors, with order books peaking at $625 million, oversubscribed three times over. Regionally, Asia bought 58 per cent of the deal, the Europe-Middle East-Africa region 41 per cent, and offshore US investors the remainder. By investor type, fund managers and asset managers took 92 per cent and private banks the rest.
Credit Suisse, Standard Chartered Bank and UBS were joint lead managers and bookrunners. Credit Suisse and UBS were also joint rating advisors on the transaction, with Standard Chartered Bank acting as green structuring agent.
BIM Land is the first Vietnamese issuer to access the international high-yield bond markets since 2019. The last offshore deals came when Vietnam Prosperity Joint Stock Commercial Bank raised $300 million from 3-year senior bonds at 6.25 per cent coupon, and the sponsors of the Mong Duong 2 power plant successfully refinanced project debt with a $679 million bond issue, both in July of that year. The only previous US dollar bond from a Vietnamese real estate issuer came from Vingroup in 2013 for a 5NC3 bond at 11.625 per cent coupon.
As a green-labelled bond, BIM Land plans to use the proceeds from the bond to fund EDGE-certified real estate projects. The company has published its inaugural Green Finance Framework, with a Second Party Opinion issued by DNV GL. BIM Land’s parent BIM Group’s operations already include renewable energy businesses in both solar and wind power.
“The debut high-yield bond issuance is a great success for BIM Land, helping the company to expand and diversify its funding channels and assert its position in the international capital market,” said BIM Land CFO Ha Bui. Besides traditional financing channel by local banks, international institutions like the International Finance Corporation and Credit Suisse, and local bond issuance, this is a new financing channel achievement for BIM Land.
“The inaugural issuance of BIM Land’s high-yield bond confirms that Vietnamese private companies have fair opportunities to access this market,” said Doan Quoc Huy, vice president and CEO of BIM Land. “With this issuance, BIM land hopes to also pave the way for Vietnamese enterprises to penetrate more and more into this funding avenues companies of other countries in the region such as Indonesia and the Philippines. International investors are very familiar with these countries’ markets, so it will be easier for them to launch, price, and close the transaction successfully.”
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BIM Land is one of the largest land bank owners in the country and its strategy is to create tourism-led master-planned townships in fast-growing tourism markets such as Halong, Phu Quoc Island, and Vinh Phuc. BIM Land is the leading tourism infrastructure developer in Vietnam as well as the partner of choice for global hospitality brands such as Park Hyatt, IHG, Fraser, and Ascott. The company’s real estate products vary from high-rise apartment complexes and townhouses to luxury beach villas, hotels, and resorts.
Conglomerate BIM Group as a whole currently places focus on activity groups including real estate, renewable energy, aquaculture and foods, and consumer and lifestyle.