Billionaire Trần Bá Dương’s Thaco raised 1.3 trillion VND in bonds

DNHN - Thaco has successfully issued a 1.3 trillion VND real estate-backed bond, continuing its strategy of raising large amounts of capital, bringing its total bond liabilities to 13.68 trillion VND.

The Trường Hải Automobile Group (Thaco) has recently launched its TCOCH2429001 bonds, valued at 1.3 trillion VND. This marks a significant move in Thaco’s fundraising strategy, aimed at boosting financial resources for expansion projects and infrastructure investments, while supporting the company’s long-term development goals.  

The TCOCH2429001 bonds have a 5-year term, from the issuance date to December 31, 2029. For the first eight interest periods, the bond interest rate is the reference rate for each period plus a margin of 3.25% per year (not lower than 8.5% per year). From the ninth period and onward, the bond interest rate is calculated similarly. Notably, these bonds are backed by real estate, which strengthens investor confidence.  

This bond issuance comes at a time when Thaco’s previous bond, THACOBOND2019 01, valued at 2 trillion VND, is maturing. Issued in late 2019 with a 5-year term and an interest rate of 9.8% per year, the THACOBOND201901 bonds were secured by land plots and shares of subsidiary companies.  

With the new issuance, Thaco has raised the total value of its outstanding bonds to four series, totaling 13.68 trillion VND. Besides TCOCH2429001, Thaco also issued other bonds, including TCOCH2328001 in November 2023 with a 5-year term and a 6% annual interest rate, TCOCH2126001 in September 2021 with a 5-year term and an 8% interest rate, and THACOH2025001 in late 2020 with a 5-year term and an 8.25% annual interest rate.  

Through this bond issuance, Thaco not only strengthens its financial capacity but also maintains stability in its long-term investment and development plans. The company’s bonds have attracted considerable interest from investors, particularly due to the reliable collateral provided, such as real estate and subsidiary company shares.  

According to data from the Business and Integration Magazine, billionaire Trần Bá Dương, Chairman of Thaco's Board of Directors, is the founder of the company and has played a pivotal role in its rise to become Vietnam's largest automobile company. In addition to leading Thaco, he is the founder and Chairman of the Board of the Đại Quang Minh Real Estate Investment Corporation, which owns several large real estate assets in Ho Chi Minh City.  

Under Mr. Dương’s leadership, Thaco rapidly captured the Vietnamese automobile market, with a market share reaching 32% in 2016. His vision extends beyond automobile manufacturing to include real estate and infrastructure investments, laying a solid foundation for the company’s long-term growth.  

Thaco’s bond issuance reflects its smart and sustainable financial strategy. The company not only raises capital through equity but also leverages financial tools such as bonds to enhance resources for development projects.  

With a reasonable bond interest rate of 8.5% per year and strong collateral, Thaco has attracted significant interest from major investors. The company's goal is to continue investing in key projects, especially in the automobile, real estate, and infrastructure sectors, to solidify its market position.  

Thaco continues to maintain a flexible and effective financial strategy through the issuance of real estate-backed bonds, helping the company raise capital for strategic projects. Investors are optimistic about Thaco’s sustainable development, thanks to its strong financial foundation and talented leadership team.

Nhan Ha