Shinhan Investment Corp. Refinances 36 Billion KRW Corporate Bonds of Vietnamese Power Equipment Company

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[Asia Economy Reporter Minwoo Lee] Shinhan Financial Investment refinanced corporate bonds of Vietnam's top power equipment group worth 36 billion KRW.

Shinhan Financial Investment announced on the 9th that it has completed the refinancing of corporate bonds for Vietnam's 'Zelec' Group. Following its success in 2018 as the first domestic securities firm to issue regional corporate bonds for a local Vietnamese company, it has now succeeded in refinancing after two years. Over the past two years, Shinhan Financial Investment has built long-term trust with the Zelec Group, securing additional transactions, which is seen as a sign of deeper establishment in the Vietnamese capital market.

This refinancing reflects Zelec's financial strength, which has grown by more than 50% over the past two years, increasing the total issuance size from 500 billion VND to 700 billion VND (approximately 36.1 billion KRW), all sold to local institutional investors. The transaction was conducted through a collaborative structure involving Shinhan Financial Investment's Vietnam branch and Shinhan Vietnam Bank.

The issuing company, Zelec, was established in 1995 by the Vietnamese Ministry of Industry and Trade and was privatized in 2015. It holds an overwhelming market dominance of over 50% in Vietnam's power equipment market, including power cables, transformers, and meters. Additionally, it has incorporated excellent public enterprises as subsidiaries, such as the largest industrial complex developer in the north, Vietnam's leading building materials manufacturer, Hanoi's largest water treatment company, and renewable energy power plants, growing into Vietnam's representative infrastructure specialized group.

A Shinhan Financial Investment official stated, "Since 2018, we have underwritten four bond issuances in Vietnam and three in Indonesia, successfully closing investment banking (IB) deals in the Southeast Asian capital markets, thereby establishing a stable IB platform." He added, "We will strengthen our position as a leading IB player in Southeast Asia through differentiated IB capabilities and experience."

Provided by Shinhan Financial Investment

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