Incombank issues CDs to raise $200 mln

State-run Vietnam Industrial and Commercial Bank (Incombank), the country's fourth-largest lender by assets, said on Monday it would raise $200 million through issuing dollar-denominated certificates of deposit (CD).

The Hanoi-based unlisted Incombank said it began issuing the CDs to Vietnamese investors and foreign investors residing in the country over a two-month period last week.

The bank did not say what it would use the proceeds for.

It offered to pay 5.3 percent interest on 12-month dollar-denominated certificates, 5.4 percent for 18-month deposits and 5.5 percent for the 24-month CDs, following approval from the central bank.

Incombank's assets at the end of June rose 12 percent from the end of 2006 to 155 trillion dong ($9.6 billion).

The central bank had said it would take more dong out of the economy in the coming months through open market transactions to curb inflation, which accelerated in July to 8.39 percent from a year earlier.

Source: Reuters