VietNam Holding Ltd (LON:VNH) said it has fully exited its position in ABA through full repayment of the bonds and accrued interest at the end of last week.
VNH made a private-equity investment of 139.8bn Vietnamese dong (VND) in ABA in July 2019 through convertible bonds.
The investment, reminded VNH, was structured with a negotiated set of terms and conditions, including the right to convert into equity once the foreign ownership limits allowed, and once there was the visibility of a listing, and yet provide downside protection in the form of full redemption in the event that there was not a listing event imminent.
During the course of the investment, VNH manager Dynam Capital enjoyed a close and strong working relationship with the company and its founders, it added, helping the management team with their expansion plans and financing partners.
But in late 2020 the investment trust said it made the decision not to exercise the conversion option, and instead seek repayment of the bonds, with the original repayment date of November 2020 extended on enhanced terms to allow ABA to conclude the negotiations and due diligence process with new financing partners.
The realisation does not have a material impact on VNH's net asset value.
As at the close of business on 25 June 2021 and based on an estimated NAV, 95.87% of VNH's assets are in listed equities and 4.13% in cash, with no unlisted positions in the portfolio.