A front of an F88 pawn shop. Photo courtesy of F88

Pawnshop chain F88 has issued bonds worth VND100 billion (over $4.3 million) with a coupon rate of 11.5 percent to fund expansion of shops and payment of salaries and bonuses.

A domestic securities investment fund bought VND74.6 billion worth of the 12-month bond issued in private placement, and individual investors purchased the remainder.

F88 has so far this year issued bonds seven times to raise a total of VND800 billion. Some of the bonds have an annual interest rate of 12.5 percent.

In a report released Tuesday, credit rating agency FinnRatings said it finds the outlook stable for F88, which has consistently executed its business plan well for years, and has the vision to become an individual financial services provider in the next 5 years.

FinnRatings has forecast F88’s return on equity at around 18 percent in fiscal year 2021, up from 13 percent in fiscal year 2020.F88 earned after-tax profits of VND44.8 billion in 2020 and VND16.6 billion in 2019.