Masan Group Corporation has announced the successful disbursement of US$375 million, the underwritten tranche of its $650 million syndicated loan signed in February 2023.

 

The company aims to fully utilise the 2023 syndicated loan via a greenshoe option of $275 million later in the year. The transaction was arranged and underwritten by BNP Paribas, Credit Suisse, HSBC, Standard Chartered Bank, and United Overseas Bank.

 

Despite recent volatility in the global banking market, Masan was able to fully draw down the underwritten portion of the 2023 syndicated loan, ensuring a healthy financial profile.

 

The loan is priced at 3.5 per cent over the US dollar secured overnight financing rate, or approximately 8 per cent per annum.

 

With a 5-year tenor, the 2023 syndicated loan will extend Masan’s debt maturity profile and strengthen Masan’s liquidity ratios. As interest rates decline and the capital market stabilises, management will continue to optimise Masan’s balance sheet, reduce interest expense, and deleverage via strategic corporate actions.

 

In a challenging macro environment, the ability to generate stable cash flows from the manufacturing and retailing consumer staple products (such as groceries, instant noodles, and seasonings, etc.) businesses and proven track record of accessing multiple capital markets will allow the company to win market share and invest in future growth.

 

With its cash position, Masan is well positioned to continue investing in new innovations as well as expanding the consumer-retail platform while maintaining a healthy balance sheet. — VNS