HABUBANK to Issue Convertible Bonds

The State Securities Commission of Vietnam (SSC) has issued a certificate allowing the Hanoi Building Commercial Joint Stock Bank (Habubank) to offer convertible bonds to the public.

 

According to the permit, the Hanoi-based lender will issue 10.5 million convertible bonds at a par value of VND100,000, or VND1,050 billion in total, to existing shareholders.

 

The coupon rate for convertible bonds is fixed at 10.49 % per annum with conversion ratio of 1:10 or each bond can be converted into 10 common shares.

 

This bond issue is part of the lender’s plan of increasing the medium and long-term capital source to expand the bank's business in 2010, and preparing for the bank's roadmap to increase chartered capital up to 2015 as provided in the regulations of the State Bank of Vietnam (SBV).