The bond has an annual interest rate of 6.70%. This transaction marks the first guaranteed bond by the Credit Guarantee and Investment Facility (CGIF) in Vietnam's logistics sector, and also SCommerce's debut bond issuance, a key milestone in its financing strategy. With a seven-year tenor, the bond provides SCommerce with stable long-term financing that better aligns with its project cash flows while maintaining liquidity for working capital needs.
Bond proceeds will be used to develop a state-of-the-art sorting center in Tan Kim Industrial Park, Tay Ninh Province, southern Vietnam. Designed to meet the surging demand of Vietnam's e-commerce industry and the increasingly complex requirements of business logistics clients, the center will serve as the southern hub for SCommerce's nationwide logistics network, significantly enhancing throughput capacity and providing more reliable, scalable supply chain solutions for corporate partners in the region.
Malayan Investment Bank acted as the sole arranger for the transaction.
CGIF CEO Noriko Nasu said, "We are delighted to support SCommerce's debut bond issuance, CGIF's first guaranteed bond in Vietnam's logistics sector. This transaction enables first-time issuer SCommerce to access long-term local currency financing with a seven-year tenor that matches the cash flow profile of its sorting center project investment. This issuance underscores CGIF's ongoing commitment to fostering private sector development in Vietnam, diversifying the local currency bond market by sector, and helping first-time issuers obtain long-term financing that supports their strategic growth objectives."
SCommerce CEO Luong Duy Hoai said, "We are honored to partner with CGIF and Malayan Bank on this transaction. The CGIF guarantee reflects the high financial, operational, and environmental, social, and governance (ESG) standards that SCommerce upholds as an issuer. With capital from this issuance, the Tan Kim sorting center will be completed by the end of this year. This will significantly expand our ability to serve e-commerce merchant partners while enabling us to scale business-to-business supply chain services under the Giao Hang Nang brand."
Malayan Investment Bank CEO Kim Thien Quang said, "We are pleased to act as sole arranger and sole placement agent for SCommerce Investment Company's debut bond issuance, a landmark transaction backed by CGIF's guarantee. This milestone has secured long-term, fixed-rate Vietnamese dong financing for Vietnam's logistics industry from global life insurance investors and highlights the development of the country's capital market. Leveraging our deep local expertise and strong regional network, we remain committed to providing financing solutions that drive national economic growth."
