Singapore鈥檚 sovereign wealth fund GIC has entered into a US$1.3bn (鈧�1.05bn) debt and equity deal with property developer Vingroup.
The Vietnamese company said in a statement this week that the group and associated companies have entered into a share purchase agreement with GIC.
Under the agreement, Vingroup said GIC will purchase ordinary shares in Vinhomes, which builds luxury homes and serviced apartments.
The deal with GIC is a precursor to the planned float of Vinhomes, which is considering seeking a valuation of US$13bn to US$16bn for the business, according to media reports.
As part of the deal, GIC will also extend 鈥渁 debt-like instrument鈥� to Vinhomes, 鈥渟ubject to satisfaction of mandatory regulatory and other conditions precedent鈥�.
鈥淭he combined value of the investment and instrument is approximately US$1.3bn,鈥� said the statement.
GIC currently has a number of investments in diversified sectors ranging from banking to agriculture in Vietnam.
Vinhomes currently has 10 projects comprising nearly 18,000 apartments, villas and shophouses in Vietnam鈥檚 largest cities, according to its annual report.
The company filed documents to list more than 2.6 billion shares in the Ho Chi Minh City Stock Exchange earlier this month.
Vinhomes hopes to make its stock exchange debut in the second quarter of this year.
