An Binh Commercial Joint Stock Bank, or AB Bank continues to seek the nod from the State Bank of Vietnam (SBV) for a new capital injection plan after being rejected mid-month due to a reportedly opaque dossier.
The bank’s spokesman said it had given a clear explanation to the central bank about the plan to more than triple its chartered capital to VND5 trillion from VND1.13 trillion this year via a share issue.
He added that the bank would not lower the set capital increase.
Capital expansion should be carried out in phases and approval for any capital increase phase must be based on the efficiency of the preceding phase, the central bank said.
The bank said in 2007-10 it could see growth of 250 percent to 300 percent in outstanding loans and profit, as well as open 20 to 30 units nationwide, which would require a massive capital injection.
AB Bank had earlier submitted an application to the HCMC branch of the SBV for a convertible bond issue worth VND5 trillion this year and next.
The bonds, at a face value of VND100,000, are to have two terms of 12 and 18 months, and will be converted into maturity shares.
Mobilized funds from the bond issue will be used to invest in the power sector and AB Bank.
It plans to scale up its chartered capital to VND7.5 trillion by late 2008 and VND10 trillion by late 2009 from the convertible bonds.
Source: Thanh Nien
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment