F88 distributes $8.7 million worth of bonds through three rounds of issuance

11:19 | 16/07/2020
F88 completed three rounds of bond issuance worth VND200 billion ($8.7 million) with the annual interest rate of 12.5 per cent.
f88 distributes 87 million worth of bonds through three rounds of issuance
F88 is planning to mobilise twice as much capital through bond issuance than last year

F88 – a company specialised in lending and pawning – has just announced finishing the third round of issuance consulted by MBS with the value of VND108 billion ($4.7 million). These distributed bonds are inconvertible without any collateral through electronic entries. Moreover, the bonds’ interest is 12.5 per cent per year, and interest is paid every three months.

Local investors purchased 78.7 per cent, including one organisation acquiring 37 per cent and foreign investors buying 21.3 per cent of the total registered volume. F88 said that the $4.7 million mobilised through the third issuance will be used to accelerate its operations. Previously, F88 completed two rounds of issuance worth VND43 billion ($1.87 million) and VND49 billion ($2.13 million), respectively.

In last August, F88 successfully issued VND100 billion ($4.35 million) of bonds consulted by BVSC. Thus, as of now, the company’s total bond certificates are valued at VND300 billion ($13 million).

Along with the success in bond distribution, F88 also revealed that its system has grown to about 200 transaction offices across 29 cities and provinces with nearly 1,000 staff members. Last year, F88 mobilised VND1.538 billion ($66,870) in bonds and expects to expand this to nearly VND3 trillion ($130.4 million), as much as double against 2019.

Early last month, F88 received an added investment of more than VND140 billion ($6 million) from Mekong Enterprise Fund III and Granite Oak, raising its assessed value to VND2.1 trillion ($91.3 million).

F88 was founded in 2013 with the charter capital of VND211 billion ($9.17 million). The pawning system has seen a purt of growth since 2017 after successfully mobilising funds. This year, F88 plans to expand the number of its transaction offices to 300, to cover 40 cities and provinces.

 

 

 

By Van Anh

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