Keppel Land to subscribe for S$30.4m worth of bonds issued by Vietnam developer Nam Long

KEPPEL Land Limited said on Friday that it has, through its indirect subsidiary Ibeworth Pte Ltd (Ibeworth), entered into a bond subscription agreement with Vietnamese developer Nam Long Investment Corporation (NLG).

Under the agreement, Keppel Land will subscribe for 500 billion Vietnamese dong (S$30.4 million) of convertible bonds issued by NLG. These bonds are due to mature in 2020 and come with a coupon rate of 7 per cent per annum.

Keppel Land may convert the bonds into ordinary shares of NLG, subject to conversion conditions, at a conversion price of 23,500 dong per share.

This follows Keppel Land's initial investment in the Vietnamese developer last year when Ibeworth subscribed for 7.1 million new shares of NLG, representing some 5 per cent stake in the company for 140.58 billion dong.

Keppel Land CEO Ang Wee Gee said that this demonstrates Keppel Land's commitment to continue to participate in the company's growth. "It also underscores our confidence in the long-term investment potential of Vietnam, which is one of Keppel Land's key growth markets," he added.