FiinRatings Assigns "AAA" Credit Rating to VND700bn Bond issued by BIWASE Long An

Hanoi, 5 December 2024, FiinRatings assigns “AAA” rating to the domestic currency bond of VND 700 billion (code: BWLCH2434001), issued by Biwase – Long An Water Joint Stock Company (“BWE-LA” or “the Company”). The bond is unconditionally, and irrevocably guaranteed by the Credit Guarantee and Investment Facility, a trust fund of the Asian Development Bank (“CGIF” or “the Guarantor”).

FiinRatings assigns “AAA” rating to the domestic currency bond of VND 700 billion (code: BWLCH2434001),  issued by Biwase – Long An Water Joint Stock Company (“BWE-LA” or “the Company”).  The bond is unconditionally, and irrevocably guaranteed by the Credit Guarantee and Investment Facility, a trust fund of the Asian Development Bank (“CGIF” or “the Guarantor”).  

This issue is the first AAA bond rated by a local credit rating agency in Vietnam. The “AAA” rating for the bond was notched up from the issuer’s “BBB” rating with “Stable” outlook, which reflects the influence of CGIF’s comprehensive, unconditional and irrevocable payment guarantee. 

FiinRatings assesses that CGIF’s creditworthiness is outstanding, supported by its strong funding, solid profitability, and prudent financial management. CGIF is also currently maintained at “AA” under international ratings by S&P Global Ratings and at “AAA” under domestic rating scales in some regional markets including Thailand, Malaysia, and Indonesia.  

The proceed from this bond is used for for the 3rd Phase expansion of the Nhi Thanh water plant. This initiative aims to enhance infrastructure and scale up the water supply capacity to meet the regional growing demand. Upon completion, the expansion will add 60,000 cubic meters per day and night to the plant’s capacity, bringing BWE-LA’s total supply to 120,000 cubic meters per day and night by 2025. 

To read the full Credit Rating Report for bond BWLCH2434001 published by FiinRatings on November 19, 2024, please click HERE 

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