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 can be repurchased and exchanged as per the agreement between the issuing company and the bondholders. This is the first bond lot of Hoa Binh – Xuan Mai, as recorded by the Hanoi Stock Exchange (HNX).
The bonds are guaranteed by GuarantCo, with the guaranteed 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, Chairwoman, and legal representative, Ms. Do Thi Kim Lien (Shark Lien), also 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 is a familiar face at Aqua One, having joined in 2016 as the technical lead for the Duong River Water Plant project. In 2018, he was appointed as the Director of Technical Projects and later promoted to Deputy General Director in charge of project development at Aqua One.
Hoa Binh – Xuan Mai is the investor of the Xuan Mai Water Treatment Plant in Mong Hoa, Hoa Binh city, Hoa Binh province. The plant covers an area of 45 hectares, with a total investment of approximately VND 3,040 billion for the plant and water supply system, and VND 1,255 billion for the clean water transmission pipeline. The project is a regional water supply scheme with a capacity of 300,000 m3/day in phase 1 (up to 2030) and an orientation to reach 500,000 m3/day by 2050. The scope of water supply includes Hanoi’s districts of Chuong My, Thanh Oai, Ung Hoa, My Duc, and a part of Ha Dong, as well as supplemental water supply 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 (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 8 years, maturing in 2032.
In 2019, GuarantCo also provided a 100% guarantee for the bonds issued by CII (HOSE: CII) with a value of VND 1,150 billion and a maximum interest rate of 10% over ten years.
Similarly, in 2018, the VND 660 billion bonds issued by NLG (HOSE: NLG) with a fixed interest rate of 6.5% and a tenor of 7 years were also guaranteed by this organization.
GuarantCo is a multinational guarantee company under PIDG (Private Infrastructure Development Group). It 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 an A1 rating to GuarantCo, and Fitch Ratings has given it an AA- rating. This means 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.”
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