FiinRatings, a credit rating agency, has assigned an AAA credit rating to corporate bonds issued by Biwase Long An Water Joint Stock Company, with the bond code “BWE-LA.” The issuance of the “BWE-LA” bond, valued at VND 700 billion, was guaranteed by the Credit Guarantee and Investment Facility (CGIF), afund of the Asian Development Bank (ADB). This marks the first time a Vietnamese corporate bond has achieved the highest possible credit rating of “AAA.”

The announcement ceremony on December 17 for the successful issuance of Biwase’s AAA-rated bond was a significant milestone, reflecting progress in Vietnam’s financial and corporate governance sectors. The presence of senior executives, representatives from banks, securities companies, and domestic and international financial investment funds underscored the importance of the event and demonstrated the high level of interest from financial institutions in Biwase’s bond issuance.

Mr. Tran Chien Cong, Vice Chairman of the Board of Directors and General Director of Biwase, presided over the ceremony, underscoring his strategic leadership in achieving this significant milestone for the company. This success not only marks a major achievement for Biwase but also paves the way for other Vietnamese enterprises to issue high-quality bonds, attracting substantial interest from major investors. The first AAA-rated corporate bond in Vietnam reflects Biwase’s strong reputation and financial capability, while also contributing to elevating the status of Vietnam’s financial market on the global stage.

The AAA-rated bond issuance by Biwase Long An Water Joint Stock Company, valued at VND 700 billion, carries a fixed interest rate of 5.5% per annum with a 10-year term. The bond is fully, unconditionally, and irrevocably guaranteed by the Credit Guarantee and Investment Facility (CGIF), a trust fund of the Asian Development Bank (ADB), ensuring maximum safety for investors and high credibility in the market. The entire proceeds will be allocated to doubling the capacity of the Nhị Thành Water Treatment Plant in Long An, increasing its capacity by an additional 60,000 m³ per day to meet the rising demand for clean water from local residents and businesses. This expansion aims to support the socio-economic development of the region amidst the rapid pace of urbanization and industrialization.

Long An Province, located adjacent to Ho Chi Minh City, not only benefits from its proximity in terms of economic, cultural, and technological development but also faces significant challenges related to water resources and environmental management. Despite its extensive river network and abundant water supply, the province’s water quality is increasingly affected by saline intrusion, tidal flooding, and an underdeveloped water supply infrastructure. Biwase, a leading enterprise in the field of water supply and environmental services in Vietnam, has established its pivotal role in developing a safe and sustainable water supply system. With its bond issuance rated AAA in credit quality, Biwase has secured strong financial resources to expand and upgrade its infrastructure, particularly through the Nhi Thanh Water Plant project.

Mr. Tran Chien Cong, Vice Chairman of the Board of Directors and General Director of Biwase, emphasized the company’s critical role in ensuring a safe water supply and modernizing the water sector. This serves as a foundation for Biwase to contribute to the socio-economic development of Long An, especially as the province undergoes a significant transformation to become an attractive hub for investment.

Statement by Mr. Nguyen Quang Thuan, Chairman and CEO of FiinRatings Joint Stock Company, at the Announcement Ceremony Mr. Nguyen Quang Thuan emphasized the significant importance of the Biwase Long An bond issuance in the context of the national financial and infrastructure market. Compared to 10-year government bonds with an interest rate of 3%, the 10-year Biwase Long An bonds have a higher interest rate of 5.5%. The higher interest rate reflects the corporate cost of capital and the need for a more attractive yield to draw investors, particularly in the corporate bond market. This is the first corporate bond in Vietnam to receive the highest credit rating of AAA, marking a historic milestone. The success demonstrates that Vietnamese enterprises are fully capable of meeting international credit standards, paving the way for attracting long-term capital for critical infrastructure development projects. This achievement is not only an honor for the enterprise but also builds significant confidence among investors in Vietnam’s corporate bond market. It may serve as the beginning of a new trend, where reputable companies can leverage highly rated bonds to raise capital efficiently, thereby reducing their reliance on bank credit.