Vietnam State Banks Target to Raise US$727Mln in 2006
Vietnam’s three state-owned banks schemed to raise US$727 million this year via issuing bonds or deposits to boost funds, said state media.
The Bank for Agriculture and Rural Development (Agribank) expected to mobilize VND5 trillion (US$314 million) from Vietnamese dong deposits and US$50 million from US dollar deposits from now until July 5.
The Bank for Investment and Development (BIDV) with underwriting of the Hong Kong and Shanghai Banking Corporation (HSBC) is preparing to issue VND3.2 trillion (US$200 million) worth of bonds.
BIDV expected to raise VND1.25 trillion under its first phase later this month, said BIDV’s officials.
Presently, BIDV is working with investors such as domestic organizations to oversee attentions to such a bond sale program. After having identified attentions of investors, BIDV will launch an official sale offer program to individuals via branches.
BIDV scheduled to raise VND6 trillion in 2006 and 2007 before its partial privatization expected in the third quarter of next year.
At the same time, the Bank for Foreign Commerce of Vietnam (Vietcombank) would mobilize VND2.6 trillion (US$163 million) in three phases, said a central bank directive.
Of the total, Vietnamese dong funds would be worth 1 trillion while US dollar funds would be equivalent to VND1.6 trillion.
Vietcombank has yet to revealed any dates for the issue. Vietcombank is seen as the key bank that handles one third of Vietnam's trade payments and is also first among five state-run commercial banks to obtain approval from the Government to list.
Vietcombank planned the initial public offering (IPO) early next year. To date, none of the country’s five state-run banks which account for nearly 70 per cent of Vietnam's market lending are listed.
Thanhniennews, Vietnam Economic Times
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