ACB to issue three trillion dong in convertible bonds

The Asia Commercial Bank has lately submitted its three trillion dong bond issue plan to the State Bank of Vietnam (SBV) to raise chartered capital. If receiving the approval of the central bank, the ACB board will submit and make presentation on the plan to the general shareholders’ meeting to pass it to issue the bonds sometimes in the third quarter this year.
Accordingly, ACB expects to issue two trillion dong bonds for the first tranches and the remaining one trillion dong bonds for the second tranche. The bonds of the bank that have the maturity of five years and coupon rate of 8% per annum will be converted into ordinary shares with the ratio 1:1 (one bond for one share) when due.
Currently, total assets of ACB have reached 31 trillion dong and its January-May pre-tax profit recorded 230 billion dong, and is expected to reach 650 billion dong for the fiscal 2006.
Shares of ACB are being traded at 16 million dong each on informal markets (one million dong par).

 

Category: Finance