Hau Giang-based Lien Viet Bank has received the nod from the State Bank of Vietnam to issue convertible bonds this year totalling 2 trillion VND (108.11 million USD).
The bank will issue 20 million convertible bonds, of which about 10.6 million bonds will be offered to existing shareholders at the ratio of 100:3 at 100,000 VND each.
The remaining bonds will be offered to staff, the Vietnam Postal Savings Service Co and other domestic individual and institutional investors at not lower than 100,000 VND each.
The bonds, with a 7 percent yield to be paid at maturity, will be issued in two tranches. One bond will be convertible into 10 shares.
Bank spokeswoman Tran Thi Mai Anh said that the bank is drawing together more details for publication.
Of the total to be raised from the issue, the bank would invest 750 billion VND (40.5 million USD) in its own financial operations, including participation in joint ventures and contributing more capital to its franchises.
About 500 billion VND (27 million USD) would be used to expand medium and longer-term lending, while another 500 billion VND (27.03 million USD) would be reinvested in the bank’s capital reserves. 250 billion VND (13.51 million USD) is earmarked for infrastructure.
By the end of last year, Lien Viet Bank posted a net profit of 540 billion VND (29.19 million USD), 16 percent higher than its target, and had total assets of 17.4 trillion VND (940.54 million USD).
It has targeted to double total assets to 1.88 billion USD this year.
The bank, formed in June 2008, has a charter capital of 3.65 trillion VND (197.3 million USD) and has not yet contracted with a foreign strategic partner./.
The bank will issue 20 million convertible bonds, of which about 10.6 million bonds will be offered to existing shareholders at the ratio of 100:3 at 100,000 VND each.
The remaining bonds will be offered to staff, the Vietnam Postal Savings Service Co and other domestic individual and institutional investors at not lower than 100,000 VND each.
The bonds, with a 7 percent yield to be paid at maturity, will be issued in two tranches. One bond will be convertible into 10 shares.
Bank spokeswoman Tran Thi Mai Anh said that the bank is drawing together more details for publication.
Of the total to be raised from the issue, the bank would invest 750 billion VND (40.5 million USD) in its own financial operations, including participation in joint ventures and contributing more capital to its franchises.
About 500 billion VND (27 million USD) would be used to expand medium and longer-term lending, while another 500 billion VND (27.03 million USD) would be reinvested in the bank’s capital reserves. 250 billion VND (13.51 million USD) is earmarked for infrastructure.
By the end of last year, Lien Viet Bank posted a net profit of 540 billion VND (29.19 million USD), 16 percent higher than its target, and had total assets of 17.4 trillion VND (940.54 million USD).
It has targeted to double total assets to 1.88 billion USD this year.
The bank, formed in June 2008, has a charter capital of 3.65 trillion VND (197.3 million USD) and has not yet contracted with a foreign strategic partner./.
