The VND1.8 trillion bonds had a three year tenor and a coupon of 7%. For every VND1 billion of bonds issued, 1,158 warrants were issued. The warrants are exercisable annually from 2011 to 2013 at a strike price of VND920,250 per warrant.
ANZ Chief Executive Officer Vietnam, Ms Thuy Dam, said: “ANZ’s innovative funding solution for FPT Corporation delivered the dual benefit of cementing FPT’s position in Vietnam’s bond markets and broadening its investor base away from the traditional bank loan market. The product will be available for Vietnam’s listed entities to access an attractive new funding avenue via the domestic capital markets.”
ANZ Head of Securities and Distribution, Asia, Mr Reuben Tucker, said: “This transaction highlights ANZ’s continued market leadership in the development of the Vietnam capital markets through providing clients with innovative debt funding solutions. ANZ is the only foreign bank to have closed four VND bond deals in 2009 and is an endorsement of the development of our Asian local currency platform.”
“With ANZ we achieved an innovative deal with very low fixed rate funding, which ultimately adds value to the company.” FPT Chief Financial Officer, Mr Phan Duc Trung, shared his thought: “The transaction has benefited not only the company but also our shareholders.
By using this first-ever structured product, FPT can raise our needed funds at the lowest interest expense and thus effectively maximise EPS for shareholders. From the perspective of investor relations, having adopted internationally-accepted norms and standards of such kind of deals into a local public company, once again we show our strong commitment to pursuing sound corporate governance and our vision to going global.”