Many companies have proposed raising capital through private placementand issuance of convertible bonds, aiming to attract strategicinvestors.
Both real estate developer Sacomreal (SCR) and FECONFoundation Engineering & Underground Construction (FCN) plan toissue convertible bonds worth 500 billion VND (23.7 million USD) with aterm of three years.
SCR will offer bonds with annual interestrates below 12 percent to its strategic investors. The conversion rateis 1:100, which means one bond can be converted into 100 shares andbondholders can make conversions three times –30 percent of the bonds inthe first year, another 30 percent in the second year and 40 percent inthe last year.
FCN's bonds have the par value of 1 million VNDeach and pay an interest rate of 6 percent per year. Bonds can also beconverted three times, with the first time 15 months from the date ofissuance and the maximum rate 50 percent of the bonds. The conversionprice will not be lower than 19,500 VND a share.
VNDirectSecurities Co also plans to issue 500 billion VND (23.8 million USD)worth of convertible bonds to its strategic partners and existingshareholders. The 12-month bonds will pay an interest rate of 5 percentper year. The capital raised from the issuance will fund the company'sfuture M&A projects.
Meanwhile, shareholders of FITInvestment Co (FIT) approved the company's proposal of issuingconvertible bonds worth 300 billion VND (14.28 million USD) next year.The one-year bonds will pay an interest rate of just 3 percent per yearand be converted at the rate of 1:10.
Nam Bay Bay Investment Corp(NBB) is the only company that will offer convertible bonds in USdollars with a total value of 210 billion VND or 10 million USD. Theinterest rate will be 5-7.5 percent per year, but when issuing bonds inVietnamese dong, the interest rate will be below 10 percent.-VNA