Tiki raises $43.5 mln via corporate bonds
In this article (5)
E-commerce platform Tiki has raised VND1 trillion (nearly $43.5 million) over the last three months by issuing corporate bonds.
Issued from 16 March to June 13, the bonds are non-convertible with a fixed interest rate of 13 percent per annum, one of the highest rates in the local market.
Over 97 percent of Tiki bonds’ buyers are Vietnamese individual professional investors. Two domestic institutional investors and two foreign investors also bought the bonds.
Tiki will use the VND1 trillion to increase its working capital, expand warehouses, invest in subsidiaries, and fund advertisement and marketing campaigns, among others.
After suffering losses in recent years, Tiki still has to spend big to grab market shares from rivals like Shopee, Lazada, and Sendo.
Tiki reported losses of over VND750 billion in 2018, and more than VND320 billion in 2019.
Questions & Answers
Q.What is the purpose of Tiki issuing these corporate bonds?
What is the purpose of Tiki issuing these corporate bonds?
Tiki plans to use the VND1 trillion raised to increase its working capital, expand warehouses, invest in its subsidiaries, and fund advertisement and marketing campaigns. These funds will support their competitive strategy.
Q.Who bought the majority of the corporate bonds issued by Tiki?
Who bought the majority of the corporate bonds issued by Tiki?
Over 97 percent of Tiki's bond buyers are Vietnamese individual professional investors. The remaining bonds were purchased by two domestic institutional investors and two foreign investors.
Q.What kind of financial performance has Tiki shown in recent years?
What kind of financial performance has Tiki shown in recent years?
Tiki has reported significant losses in recent years. The company lost over VND750 billion in 2018 and more than VND320 billion in 2019, as it spends heavily to compete for market share.
Q.What interest rate are the corporate bonds paying?
What interest rate are the corporate bonds paying?
The corporate bonds issued by Tiki offer a fixed interest rate of 13 percent per annum. This rate is noted as one of the highest available in the local market.
Reader pulse
Is Tiki's high-interest bond raise a smart move?
17,957 votes so far