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Vietcombank readies bond issue totalling $265 million
Vietcombank will issue bonds totalling VND5 trillion (US$264.55 million) to generate capital for business development, improve infrastructure and ensure a capital adequacy ratio of at least 10 per cent of total capital, under a plan approved this week by the State Bank of Viet Nam.
The bond issue will be divided into both Vietnamese dong and US dollar tranches, with the lion's share, VND4.6 trillion ($243.38 million), to be issued in dollars and the remaining VND400 billion ($21.16 million) in the local currency.
Enterprises (Excluding credit institutions) will not be eligible to buy the dollar bonds.
The bonds would have a maturity date of at least two years and bear an interest rate dependent upon market rates at the time of the issue, said Le Thi Hoa, a member of Vietcombank's executive board.
The bank had yet to determine a consultant for the issue and were still in the process of drawing up a detailed plan, Hoa added.
Vietcombank also has plans to increase its charter capital in the second and fourth quarters of this year from VND12.1 trillion ($640.21million) to VND17.58 trillion ($930.16 million).
The State Bank of Viet Nam has replaced the State Capital Investment Corporation (SCIC) as the representative of State-owned capital in Vietcombank. The Ha Noi-based commercial bank remains over 90.7 per cent State-owned.
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