In an attempt to raise capital and create a source of long-term funds for lending to key development projects, the Viet Nam Bank for Agriculture and Rural Development (Agribank) will issue bonds worth VND3 trillion (USD187 million).
At a conference in Ha Noi on Sept. 20, Agribank deputy general director Nguyen The Binh said that the bonds could be purchased by both domestic and foreign investors via the bank's branch network nationwide. VND2.6 trillion worth of the bonds, more than 80 percent of the total, have already been registered by investors, he added.
The remaining bonds would be offered through October 10 at interest rates of 9.8 percent per year on 10-year bonds and 10.2 percent on 15-year bonds.
Binh said that the bonds would be traded through the HCM City Securities Trading Centre or deposited with the Securities Depository Centre once they have been licensed by the State Securities Commission.
"The bond issue will also help the bank promote its image and prestige both inside and outside Viet Nam," Binh said.
The bonds, in denominations of at least VND1 million (USD67), will be issued by registration in order to ensure complete security for bond owners. The bank will open bond accounts for buyers and issue certificates to buyers.
Binh said bond owners would be given priority for acquiring Agribank shares once the bank equitises, which is currently planned for 2008.