Masan Group Corporation (Masan) has just announced that it has successfully completed raising equity capital worth USD 250 million from Bain Capital (“Bain”), the world’s leading private equity fund with total assets under management of approximately USD 180 billion.
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Accordingly, Masan will receive VND6,228 billion in net cash from this investment, significantly improving the Company's balance sheet. Masan will continue to actively seek alternative solutions to reduce leverage and interest expenses with a target net debt to EBITDA of <3.5x. As a leading corporation in Vietnam with a consumer-centric philosophy, Masan is one of the most prestigious brands in the international financial market. Accordingly, in the past 2 years, the Company has successfully raised USD1.5 billion from the global capital market. In the fourth quarter of 2023, the Company successfully hedged 100% of the risk of long-term debt in USD with reasonable terms: USD950 million of loan principal was converted to VND at an exchange rate of VND23,937 and a fixed interest rate of 8.93% per annum. Accordingly, interest rate swaps combined with forward FX: 45 million USD principal payment in 2024 with an FX rate of 24.005; 300 million USD with a fixed interest rate of 6.48% per year for 5 years with a 1-year FX rate of 23.790 to minimize risks related to currency and interest rates. Therefore, the recent appreciation of the USD does not have a material impact on the Company's profits. In addition, on April 20, Techcombank ("TCB"), an affiliate of Masan, approved a plan to pay a 15% cash dividend. Owning 19.9% of economic interests in TCB, Masan is expected to receive more than 1,000 billion VND in cash in the next 6 months, helping the Company to reduce financial leverage.Ngoc Tan
Source: https://baochinhphu.vn/masan-hoan-tat-huy-dong-250-trieu-usd-tu-bain-capital-10224042516200335.htm
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