Vietcombank to Issue Bonds for Capital Beef-up

The Bank for Foreign Trade of Vietnam (Vietcombank) will issue bonds to beef up its capital, said a press conference in Hanoi on November 22.

 

Le Thu Ha, deputy general director of Vietcombank, said that he bonds would be issued inside the country for Vietnamese individuals and organizations only. The bonds would be issued on December 26, 2005 and their due maturity is on December 26, 2012. The total number of bonds is 12 million bonds (± 15 per cent) with a total face value of VND 1,200 billion (± 15 per cent). The bonds’ interest rate should be decided by an interest auction with a ceiling interest of 8.5 per cent. Ha said that 70 per cent of the bonds would be sold to organizations with a minimum volume of 50,000 bonds valued at VND 5 billion and a maximum volume of 500,000 bonds, valued at VND 50 billion, per investor. The remaining 30 per cent would be sold to individuals with a minimum volume of 100 bonds, valued at VND 10 million, and a maximum volume of 100,000 bonds, valued at VND 10 billion, per investor.

 

The bonds will be sold to organizations based on interest auctioning with a ceiling interest rate of 8.5 per cent per year. They will be sold to individuals at face value with interest rates fixed by the interest rate decided by interest auctioning for organizations.

Principal and interest will be paid in Vietnam dong. Bond holders can use 100 per cent of their bond value to buy shares of Vietcombank when it is equitised.