Techcombank will offer 30 million convertible bonds to existing shareholders, worth 3 trillion VND (157.89 million USD), the bank announced on March 18.
The timing of the issue was still being determined, the bank said.
Bondholders would be allowed to convert the bonds into shares in five years, after that time the bonds would no longer be convertible. The bonds would pay a coupon rate of 1 percent per year during the first five years and 12 percent thereafter, until after their maturity in ten years.
Techcombank also planned to issue additional shares on June 10, worth 1.53 trillion VND (80.52 million USD), with plans to invest 55 percent of the capital raised from the issue into improved IT systems, 27 percent in equipping its headquarters, and 17.85 percent in expanded operations.
Of the new shares, 149 million shares would be offered to existing shareholders at 10,000 VND per share and the remaining 4 million as bonuses to top-performing employees.
Techcombank plans to increase its charter capital from 5.4 trillion VND (284.21 million USD) to 6.93 trillion VND (364.73 million USD) this year. It has targeted assets by year’s end of 144.38 trillion VND (7.6 billion USD), a 35-percent increase over 2009, as well as profits of 3.47 trillion VND (182.63 million USD), also 35 percent higher than last year’s.
The bank has projected annual profits by 2015 of 13.5 trillion VND (712 million USD)./.
The timing of the issue was still being determined, the bank said.
Bondholders would be allowed to convert the bonds into shares in five years, after that time the bonds would no longer be convertible. The bonds would pay a coupon rate of 1 percent per year during the first five years and 12 percent thereafter, until after their maturity in ten years.
Techcombank also planned to issue additional shares on June 10, worth 1.53 trillion VND (80.52 million USD), with plans to invest 55 percent of the capital raised from the issue into improved IT systems, 27 percent in equipping its headquarters, and 17.85 percent in expanded operations.
Of the new shares, 149 million shares would be offered to existing shareholders at 10,000 VND per share and the remaining 4 million as bonuses to top-performing employees.
Techcombank plans to increase its charter capital from 5.4 trillion VND (284.21 million USD) to 6.93 trillion VND (364.73 million USD) this year. It has targeted assets by year’s end of 144.38 trillion VND (7.6 billion USD), a 35-percent increase over 2009, as well as profits of 3.47 trillion VND (182.63 million USD), also 35 percent higher than last year’s.
The bank has projected annual profits by 2015 of 13.5 trillion VND (712 million USD)./.
