The State Bank of Vietnam (SBV) has put brake on An Binh Commercial Joint Stock Bank’s (AB Bank) plan to more than triple its chartered capital to VND5 trillion from VND1.13 trillion due to the bank’s opaque dossier.
SBV required the bank to provide more sufficient information on its operations and was asked to explain the contents of a plan to expand credit policy and measures to develop human resources.
Capital expansion should be carried out in phases and approval of any capital increase phase must be based on the efficiency of the preceding phase, the central bank said.
SBV also directed the HCMC branch to verify conditions at AB Bank to issue convertible bonds before giving AB the nod.
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
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