HSBC has become the first foreign bank in Vietnam to receive permission to issue long-term bonds this year.
The bond issue will be equivalent to 8 trillion dong ($496 million).
"The coupon on the long-term paper issued in 2007 by HSBC in Vietnam should match market interest rates," the central bank said in a directive seen on Thursday.
HSBC officials in Hanoi said details of the bond issue had not been finalised.
The bank, which has two retail branches in the capital Hanoi and trade hub Ho Chi Minh City, was also the first foreign bank in the country to offer dollar-denominated certificates of deposit two years ago, with interest now ranging from 4.1 to 4.85 percent.
Bankers in Hanoi said dong-denominated corporate bonds are much sought after by foreign investors for their attractive annual yields of 9 percent to 10 percent.
Source: Reuters
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