Phat Dat and ACA foster lasting partnership
Phat Dat Real Estate Development (PDR) and ACA Investments Pte Ltd – a fund management company under the Japanese Daiwa Securities Group – signed an investment cooperation agreement at the former’s office. The event marked an important milestone for ACA as it also made an initial investment of $30 million in PDR.
The cooperation states that ACA will invest $30 million in PDR through a convertible loan with no collateral. The unsecured convertible loan, with an 8-per-cent interest rate, shows the confidence of the Japanese investor in the growth prospects, asset quality, and implementation strategy of PDR.
With a conversion price of VND120,000 ($5.20) per share, equivalent to a market capitalisation of about VND60 trillion (around $260 billion), ACA expressed its expectation for the outstanding growth of PDR in the following years.
The signing ceremony between PDR and ACA
The cooperation states that ACA will invest $30 million in PDR through a convertible loan with no collateral. The unsecured convertible loan, with an 8-per-cent interest rate, shows the confidence of the Japanese investor in the growth prospects, asset quality, and implementation strategy of PDR.
With a conversion price of VND120,000 ($5.20) per share, equivalent to a market capitalisation of about VND60 trillion (around $260 billion), ACA expressed its expectation for the outstanding growth of PDR in the following years.
With a B rating and a stable outlook from Fitch Ratings, PDR has proven its ability to comply with the strict regulations from international investment funds regarding its capacity to develop and implement proposed plans.
Hiroyuki Ono, managing director at ACA, shared his enthusiasm for the cooperation, “We are happy that the day has come. It is not easy to close a deal during the pandemic, but our firm relationship and support from our distinguished advisors made us confident to pursue the deal. Congratulations to chairman Nguyen Van Dat and the team, we are happy to be part of PDR’s upcoming great success.”
To gain the trustworthiness of its partners, over the years, PDR has established transparent information disclosure, demonstrating PDR’s readiness for strategic cooperation with investment funds and international organisations.
Diversifying capital structure
In 2021, PDR exceeded the target of profit-before-tax target by more than 100 per cent, increasing the figure by 52 per cent on-year. At the same time, PDR is also expanded to new urban areas, especially in the central coastal area and Binh Duong, Ba Ria-Vung Tau, Dong Nai, Khanh Hoa, Phu Yen, Lam Dong, and Da Nang.
The convertible loan to foreign investors is a part of PDR’s strategy to diversify its capital structure and cooperation with key strategic partners. This deal is helping PDR with long-term capital, good interest rates, lowering the cost of capital for optimising investment and development and increasing competitive advantage. In addition, the cooperation with international strategic partners creates a premise for the growth of PDR’s expertise to contribute to enhancing core competencies and the company’s brand value in domestic and regional markets.
The convertible loan will be used for PDR’s implementation of its 5-year business plan until 2025, revolving around residential real estate, hospitality real estate, and industrial real estate and logistics. These three types of products will offer stable cash flows, minimising the impact of the macro-economic cycles as well as the real estate industry.
The presence of PDR in prestigious domestic and international indices, such as VN30 and MSCI, has demonstrated the outstanding development of PDR’s stocks, serving as the basis for PDR to exert influence in the global financial market. These favourable factors have allowed PDR to continue to actively seek and raise capital from strategic partners and investors in the future.
The proactive opening to foreign investors has demonstrated PDR’s new stature, asserting that the right development strategy has helped upgrade the position and reputation of PDR’s brand in the domestic and international capital markets.
