The investment arm of Vietnam National Textile and Garment Group (Vinatex) will sell bonds worth 1 trillion dong ($62 million) this year to finance an expansion, a state-run newspaper reported on Friday.
Vietnam's largest textile firm would issue the bonds in two tranches and the proceeds should help it and subsidiaries boost production more cheaply than bank loans, Vinatex chairman Le Quoc An was quoted by the Saigon Times Daily as saying.
France's BNP Paribas would underwrite the bonds and the Empower Securities Co., 22 percent owned by Vinatex, would be the adviser on the issue.
An gave no further details, but financial sources close to the deal said the first tranche would be sold in the next few weeks.
Textile and garment products are Vietnam's second-largest foreign exchange earner after crude oil, bringin in $4.24 billion in the first seven months of this year, a rise of 28.6 percent from a year earlier, government figures showed.
Vinatex, which accounted for 22 percent of Vietnam's textile and garment exports in 2006, will undergo privatisation next year following a government approval granted in June.
The group has been partially privatising its subsidiaries, planning the IPOs of two units, Phong Phu Fabric Textile Factory and Phong Phu Towel Textile Factory, late this month on the Ho Chi Minh Stock Exchange.
Source: Reuters
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