Vietnam's Military Commercial Bank will raise 1 trillion dong ($62 million) via the sale of 1 million convertible bonds to boost its finances, the stock market watchdog said.
The Hanoi-based bank was awarded a licence on Friday to sell the three-year bonds in two phases. The bonds will have an annual coupon of 8%, the State Securities Commission said in a statement.
The unlisted bank, Vietnam's 11th-largest lender by assets, will sell 420,000 bonds in the first phase which will be converted into shares under a 1-for-1 scheme in 2009. The 580,000 bonds to be sold in the second phase will be converted into shares in 2010.
Military Bank has not published dates for selling the bonds.
The bank will use proceeds from the bond sale and also issue 954,800 new shares to nearly double its registered capital to 2 trillion dong in 2007, it said in a statement in late April.
The bank, the only lender controlled by Vietnam's army, and the country's more than 30 part-private banks have been raising funds to fuel economic growth projected at 8.5% this year after an 8.17-percent rise in 2006.
Military Bank, with more than 4,000 institutional and individual investors, has not said when it plans to list its shares on the country's stock market .
Its shares have fallen around 12% in the past month to 104,000 dong ($6.46) each this week, on Vietnam's unofficial and unregulated markets, valuing the bank at about $675 million.
The bank's audited net profit nearly doubled the 2005 net figure to 211.4 billion dong last year when total assets soared 58% to 13.81 trillion dong.
The bank's assets have since risen 10% to 15.2 trillion dong as of the end of February.
Source: Reuters
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment