Masan Secures up to USD650 million Syndicated Loan Pays Down VND3,000 billion in Bonds
Ho Chi Minh City, 10 March 2023 – Masan Group Corporation (HOSE: MSN, “Masan” or the “Company”), today announced the completion of the roadshow for a USD650 million syndicated loan (the “2023 Syndicated Loan”), underwritten by BNP Paribas, Credit Suisse, HSBC, Standard Chartered Bank, and United Overseas Bank (“Mandated Lead Arrangers and Bookrunners” or “MLABs”). This transaction, coupled with the over-subscribed USD600 million 2022 Syndicated Loan, will potentially amount up to approximately USD1.25 billion of financing raised over the past six months. This is a vote of confidence in Masan’s strong business fundamentals and a validation of Masan’s credit profile. Management will continue to optimize Masan’s balance sheet, reduce interest expense and deleverage via strategic corporate actions.
The MLABs have committed USD375 million and the 2023 Syndicated Loan roadshow attracted significant interest from nearly 200 attendees of interested lenders in Singapore and Taiwan, which will enable Masan to upsize the transaction for a total amount of USD650 million. The loan is priced at 3.5% over the U.S Dollar Secured Overnight Financing Rate (“SOFR”), or approximately 8.0% per annum. With a 5-year tenor, the 2023 Syndicated Loan will extend Masan’s debt maturity profile and strengthen Masan’s liquidity ratios.
In addition, Masan repaid VND3,000 billion bonds issued in 2020 and matured on 9 March 2023. Prior to the drawdown of the 2023 USD Syndicated Loan transaction, Masan has VND17,147 billion of cash & cash equivalents (including investments) enabling the Company to settle all upcoming debt obligations, and more importantly invest for future growth.
MASAN GROUP CORPORATION
Masan Group Corporation (“Masan” or the “Company”) believes in doing well by doing good. The Company’s mission is to provide better products and services to the 100 million people of Vietnam, so that they can pay less for their daily essentials. Masan aims to achieve this by driving productivity with technological innovations, trusted brands, and focusing on fewer but bigger opportunities that impact the most lives.
Masan Group’s member companies and associates are industry leaders in branded fast moving consumer goods, branded meat, modern retail, F&B retail, financial services, telecommunications, and value-add chemical processing, altogether representing segments of Vietnam’s economy that are experiencing the most transformational growth.
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This press release contains forward-looking statements regarding Masan’s expectations, intentions or strategies that may involve risks and uncertainties. These forward-looking statements, including Masan’s expectations, involve known and unknown risks, uncertainties, and other factors, some of which are beyond Masan’s control, which may cause Masan’s actual results of operations, financial condition, performance, or achievements to be materially different from those expressed or implied by the forward-looking statements. You should not rely upon forward-looking statements as predictions, future events or promises of future performance.