The realisation will not have a material impact on Vietnam Holding’s net asset value
Vietnam Holding (LON:VNH) confirmed it has entirely pulled out of its position in ABA as the trust paid off the bonds and accrued interest.
In July 2019 Vietnam Holding made a private equity investment amounting to 139.8bn Vietnamese dong (VND) via convertible bonds.
“The investment was a private-equity transaction, structured with a negotiated set of terms and conditions, including the right to convert into equity once the foreign ownership limits allowed,” the trust said in a statement.
Towards the end of 2020 Vietnam Holding decided not to exercise the conversion option, and instead seek repayment of the bonds.
The realisation will not have a material impact on Vietnam Holding’s net asset value, the company said.
As at the close of business on 25 June 2021 and based on an estimated NAV, 95.87% of VNH’s assets are in listed equities and 4.13% in cash. There are no unlisted positions in the portfolio.
Vietnam Holding provides exposure to the evolution in the Vietnamese economy through banking shares, but also steel and construction companies.
Vietnam’s economy is becoming increasingly digital with many Vietnamese using smart phones for digital transactions, but with around 60% of the population still unbanked, there is significant opportunity for greater adoption as the middle class grows.