Techcombank issues bonds equal to $123 mln

Techcombank said Monday that it had raised VND2.1 trillion (more than US$123 million) by issuing three-year bonds on Oct. 22, and the proceeds would be added into its working capital.

The face value, as ruled, is VND100,000.

The bonds, which will be due on Oct. 22, 2012, carry a coupon of 10.5 percent for the first year. The coupon on the remaining two years is floating, equal to the average rate on 12-month savings paid by four state-run banks (Agribank, Vietcombank, VietinBank and Bank for Investment and Development of Vietnam) plus 2.8 percentage points.

Techcombank said if the floating rate is higher than the State Bank of Vietnam’s ceiling rate, the ceiling level will be applied.

Techcombank, with 20 percent of capital owned by British banking group HSBC, plans to raise its registered capital to VND5.68 trillion dong by the year of this year from a current VND5.4 trillion.

By Thuy Nguyen

Other news