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Mining group Vinacomin to raise $120 mln in dong bonds
State mining group Vinacomin plans to issue bonds on domestic markets to raise 2.5 trillion dong ($120 million, it said in a statement on Wednesday.
The five-year bonds, with a face value of 1 billion dong each, would carry a coupon of 14.5 percent for the first year and mature on Jan. 18, 2018, the Hanoi-based unlisted group said.
From the second year the annual coupon will be the average of 12-month dong deposit rates offered by four major banks in Vietnam plus 3.6 percent, Vinacomin said.
ANZ Bank Vietnam and VietinBank will act as the issuing agent and consultant for the issue, the second tranche of a Vinacomin's bond first issued in last year.
The group raised 500 billion dong in July 2012 via the first tranche of the five-year dong bonds, also with an annual coupon of 14.5 percent for the first year and similar terms for remaining years.
In November 2012 Standard & Poor's Ratings Services cut its long-term credit rating on Vinacomin to 'B+' from 'BB-', with stable outlook, citing a weakening financial risk profile due to high spending and falling profitability in the coal business.
Vinacomin will use the proceeds to fund its projects, it said.
reuters
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