Vietnam Infrastructure, a USD402m closed-ended fund dedicated to investment in Vietnam’s rapidly growing infrastructure sector, has been admitted to trading on the Alternative Investment M
Vietnam Infrastructure, a USD402m closed-ended fund dedicated to investment in Vietnam’s rapidly growing infrastructure sector, has been admitted to trading on the Alternative Investment Market of the London Stock Exchange. It is the first AIM-traded fund to focus investment on key strategic infrastructure assets in Vietnam, including the energy, transport, water and telecommunications sectors.
With demand from investors resulting in the offering being approximately four times oversubscribed Vietnam Infrastructure increased the offering and raised USD402.1m in gross proceeds.
‘The tremendous response to our offering speaks not only to strong demand for infrastructure investments, but also to the outstanding results that our other Vietnam funds have achieved,’ said Don Lam, chief executive and co-founder of the fund’s investment manager, VinaCapital Investment Management. ‘We look forward to furthering our investment in Vietnam’s economic and social progress through Vietnam Infrastructure Limited.’
Over the past decade, Vietnam’s economy has grown at an average annual rate of 7.5 per cent, while the country’s population has also continued to grow rapidly. However, investment in Vietnam’s infrastructure to date has failed to keep pace with these changes, creating significant opportunities for investment in the sector.
‘Between now and 2020, Vietnam’s infrastructure is projected to require investment of USD140bn,’ says VinaCapital managing director William Lean. ‘With the launch of this fund, we will leverage the expertise and relationships of the VinaCapital team to assemble a first-rate portfolio of infrastructure investments.
‘Our focus will be on strategic projects with strong underlying economic demand in Ho Chi Minh City, Hanoi and other key regions in Vietnam. We are currently reviewing an attractive pipeline of projects including highways, bridges, airports, power plants and telecommunications. We are also anticipating immediate investment opportunities, promising steady cash flows, from the equitisation of state-owned infrastructure assets.’
VinaCapital Group is an investment bank and fund manager with more than 130 investment professionals and offices in Ho Chi Minh City, Hanoi, Da Nang, and Hong Kong, offers investment products, strategic financing, and merger and acquisition services. VinaCapital currently manages assets totalling more than USD1.9bn.
In addition to Vietnam Infrastructure, VinaCapital manages Vietnam Opportunity Fund, a USD891m closed-ended fund investing in traded equity, private equity and real estate and listed on AIM in 2003, VinaLand, a USD776m AIM-traded real estate fund launched in March last year, and DFJ VinaCapital, a USD50m venture capital partnership focusing on Vietnam’s technology sector.