8,751 bonds with a face value of VND 100 million each were issued by Hoa Binh – Xuan Mai Clean Water JSC on November 19 and completed on November 27. The issuance raised VND 875.1 billion with a fixed interest rate of 5.75% per annum. The bonds have a tenor of up to 20 years, from November 19, 2024, to November 19, 2044.
The bonds are subject to repurchase and exchange as per the agreement between the issuing company and the bondholders. This is the first bond lot of Hoa Binh – Xuan Mai Company, according to the Hanoi Stock Exchange (HNX).
The bonds are guaranteed by GuarantCo with a guarantee amount equivalent to 100% of the bond debt payments, including principal and interest payments. The Vietnam Securities Depository and Clearing Corporation is the registration and depository organization.
Hoa Binh – Xuan Mai is a water treatment and supply company headquartered in Hoa Binh province, established in 2018 with a charter capital of VND 530 billion. The company is owned by Aqua One Corporation, a leading company in the water industry. Its founder, Ms. Do Thi Kim Lien (Shark Lien), served as the Director and Legal Representative when the company was first established. Currently, the company is led by Mr. Pham Manh Hung as the General Director and Legal Representative.
Mr. Pham Manh Hung. Source: Aqua One
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Mr. Hung has been a familiar face at Aqua One since 2016, taking on the role of technical lead for the Duong River Water Plant project. In 2018, he was appointed as the Technical Director for projects and later promoted to Deputy General Director in charge of project development at Aqua One.
Hoa Binh – Xuan Mai is currently the investor in the Xuan Mai Water Treatment Plant in Mong Hoa, Hoa Binh city, Hoa Binh province, spanning an area of 45 hectares. The total investment for the plant and water supply system amounts to approximately VND 3,040 billion, while the transmission pipeline costs VND 1,255 billion. The water supply project has a regional-scale capacity, with a phase 1 (by 2030) output of 300,000 m3/day, and a planned capacity of 500,000 m3/day by 2050. The project’s scope includes supplying water to Hanoi’s districts of Chuong My, Thanh Oai, Ung Hoa, My Duc, and a part of Ha Dong, as well as providing additional water to Hoa Binh province.
Xuan Mai Water Plant in Hoa Binh province.
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Consecutive bond issuances guaranteed by GuarantCo for 100% payment
Regarding the bond payment guarantee organization, in late October, the announcement of the issuance of VND 1,000 billion bonds by IDI Infrastructure Development and Investment Corporation (HOSE: IDI) disclosed that GuarantCo was the guarantor for the entire bond payment. IDI’s bonds have a fixed interest rate of 5.58% per annum for an eight-year term, extending until 2032.
In 2019, GuarantCo also provided a 100% guarantee for the bonds issued by Ho Chi Minh City Technical Infrastructure Investment JSC (HOSE: CII) worth VND 1,150 billion, with a maximum interest rate of 10% over ten years.
Similarly, in 2018, the bonds issued by Nam Long Investment Corporation (HOSE: NLG) worth VND 660 billion with a fixed interest rate of 6.5% and a seven-year term were also guaranteed by this organization.
GuarantCo is a multinational guarantee company under PIDG (Private Infrastructure Development Group) that specializes in providing guarantees in local currencies to fund infrastructure projects in Sub-Saharan Africa, South Asia, and Southeast Asia, as well as guarantees in US dollars. GuarantCo is funded by five G12 nations: the UK, Australia, Switzerland, Sweden, and the Netherlands.
Moody’s has assigned GuarantCo an A1 credit rating, while Fitch Ratings gave it an AA- rating. This implies that bonds guaranteed by GuarantCo will have a credit rating equivalent to that of the company. GuarantCo is headquartered in the Republic of Mauritius, an island nation in the southwestern Indian Ocean, about 900 km east of Madagascar, commonly known as Africa’s “tax haven.”
