BIDV Plans US$500Mln Int'l Bonds Issue in 2007
The state-owned Bank for Investment and Development of Vietnam (BIDV) plans to issue US$500 million international bonds this year, said the bank general director Tran Bac Ha.
The issue is aimed to raise capital to build Saigon-Trung Luong-My Nhon-Can Tho, which has total investment of US$1.8 billion.
Ha said his bank plans to establish a joint stock company to build the 120-kilometer highway under the BOT form.
“The issuance of US$500 million global bonds is part of the bank’s plan to raise funds for the project,” Ha said.
It will pave a new way for Vietnamese enterprises to lure capital in the international market, helping to build a developed bond market in Vietnam, he added.
BIDV has got approval from the Government's for its first global bond issue, the official said.
The bank announced Tuesday it sold all VND3 trillion worth of five-year bonds at interest rate of 8.15 per cent in the first tranch of 2007. Foreign investors, including non-resident ones, won bids to buy 48 per cent of total.
The successful issue helps BIDV become the biggest corporate bond issuer in Vietnam, with total VND7.2 trillion (US$450 million) of bonds floated on domestic market.
The PM has asked the bank to build pilot project to become a financial group. (Vietnam and World Economy, Youth)
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