Masan to borrow up to $600mln from foreign banks for business expansion

The Board of Directors of Masan Group (HoSE: MSN) has approved the signing of credit contracts with BNP Paribas, Credit Suisse AG, Standard Chartered Bank, HSBC for a total loan of $250 million.

Masan’s BOD also allowed The Sherpa, a wholly owned subsidiary of Masan, signed a credit contract with the above parties. The Sherpa is entitled to an initial loan of no more than $170 million, with the option to increase the loan by up to $180 million.

The maximum loan is up to $350 million, equivalent to more than VND8,100 billion. Masan Group guarantees The Sherpa's payment obligations related to and arising from the credit agreement.

As of end-March, Masan has a total debt of VND58,426 billion ($2.5 billion). In which, short-term loans are VND19,183 billion ($820 million), of which VND3,865 billion ($165 million) are long-term loans due to be paid in 12 months.

Total long-term loans are VND39,253 billion, of which long-term loans are VND8,162 billion, unsecured bonds are VND16,018 billion and secured bonds are VND18,745 billion.

At the 2022 annual general meeting of shareholders, Masan presented to shareholders a plan to issue $500 million to be converted bonds to the international market. The term of this bond lot is 5 years, the conversion price is not lower than the book value of one share according to the consolidated financial statements of 2021.

The issuance is expected to be in 2022 or 2023 and listed on the Singapore Stock Exchange. The purpose of issuing bonds is to invest in the company's projects, contribute capital to subsidiaries, and supplement capital for operations.

1,000 new stores and 20 supermarkets

Masan has opened 300 new WinMart/WinMart+ stores since the beginning of 2022 and planned to open additional 700 new stores and more than 20 WinMart supermarkets/hypermarkets by the end of 2022, the company said in a separate statement.  

“The plan is still being fully implemented, firmly and on schedule with the set goals. WinCommerce is focusing on developing a multi-use point of sale model and a franchise store because we think this will be the trend of the service industry in general and retail in particular,” said Mr. Nguyen Van Quy, Deputy General Director of WinMart+ chain.

Masan Group expects 2022 consolidated revenue at between VND 90,000 billion to VND 100,000 billion, up 22% to 36% compared to 2021.

In 2021, revenue from catering businesses and consumers will contribute 68% to total revenue and are expected to grow to 85% in 2022. The group’s 2022 profit target is at about VND6,900 – VND8,500 billion, up 82% - 124% compared to the previous year.