Vietcombank Sells US$33.2Mln Bonds to Individuals
The Bank for Foreign Trade of Vietnam (Vietcombank) sold VND524.5 billion (US$332 million) worth of bonds to about 100 individual investors at the bond sales yesterday after selling VND840 billion worth of bonds to institutional investors a day before.
Once again, the bond sale brought higher-than-expected results, said Vietcombank general director Vu Viet Ngoan.
He said that he himself was surprised by the fast sales of the bank bonds.
Just a minute after transactions began, Vietcombank counter desks across the country had successfully processed almost 100 orders worth VND525 billion from individual investors, most ordering the maximum amount of VND10 billion that they are allowed.
The management board had to decide to increase sales by another 15 per cent of the total value of licensed bonds to VND525 billion from VND360 billion, however, the volume could not meet demand.
Some experts said that investors were bargain-hunting the Vietcombank bonds, which proved the high prestige of the bank.
However, Ngoan from Vietcombank said there may have been speculation in the auction.
He said that his bank is preparing to list on bourse in 2007, therefore, foreign investors are forecast to repurchase the bonds from domestic investors.
Through the two auctions, Vietcombank snapped up total revenue of VND1.36 trillion (US$86.4 million), compared with the targeted VND1.2 trillion.
Most of the investors expect that the bonds will be converted into shares when the bank goes public in late next year or early 2007.
VNA
Vietnamese
