The Asia Commercial Bank, the country’s second largest joint-stock bank, has finished the first issue of convertible bonds with VND1.65 trillion (over US$103.1 million).
The issue started early this month. For each ACB share, the shareholders were entitled to buy 1.5 bonds at the nominal value of VND1.5 million. The bond rate is 8% per year.
Next year, VND1.1 trillion worth of bonds will be converted to ACB shares at the ratio of 1:1. The bonds remaining will be converted in 2008.
The Ho Chi Minh City-based bank plans to launch the second issue of convertible bonds worth VND1.35 trillion (about US$84.37) million next year, perhaps in the first quarter.
The two issues total VND3 trillion.
The ACB is waiting for approval from the State Securities Commission to list its shares on the Vietnamese stock exchange. Its unlisted shares are currently trading at about VND10 million each (compared with the par value of VND1 million) in the OTC market.
The ACB is the second bank to get the go-ahead from the State Bank of Viet Nam to list on the securities market after Sacombank. The Sai Gon Bank for Industry and Trade (Saigonbank) has also asked permission from the State Securities Commission to go up on the market.
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