Bank issues convertible bonds to partners

An Binh Bank (AB Bank) will issue VND600 billion (US$28.6 million) worth of convertible bonds to strategic shareholders on Dec. 30.

The International Finance Corporation (IFC) will buy VND480 billion ($5.7 million) worth of bonds, convertible into a 10-per-cent stake in the bank after two years. Strategic shareholder May Bank will buy the remaining VND120 billion ($6.15 million) worth of bonds, aiming to maintain its current 20-per-cent stake in An Binh Bank.

"Funds raised through this issue will be allocated to the bank's medium- and long-term capital and to upgrade infrastructure," said Bank Chairman Vu Van Tien.

The bonds will have a face value of VND1 million $47.6 and pay a yield of 6.9 per cent per year. One bond will be convertible into 100 shares.

AB Bank has also closed registration for bonus shares to be issued at a 1:10 ratio. The bank is attempting to raise funds in order to increase charter capital from VND3.4 trillion to VND3.8 trillion ($182.4 million), with a further increase to VND4.8 trillion ($228.6 million) within two years.

vietnamnews

>   Press release on implementation of banking tasks in 2010 and directives in 2011 (30/12/2010)

>   Declining interbank rates suggest stronger liquidity (30/12/2010)

>   Insurance premium grows 20% to $1.5b year-on-year (30/12/2010)

>   Vietnam Military Bank to open branch in Laos (30/12/2010)

>   SBV strengthens counterfeiting measures (30/12/2010)

>   Vietnam should stop providing loans in foreign currencies: Expert (29/12/2010)

>   Credit growth targeted at 23% (29/12/2010)

>   State Bank takes steps to halt inflation (28/12/2010)

>   Investor group urges cap for forex deposit interest (28/12/2010)

>   Banks fall short of profit targets (28/12/2010)