Hanoi Building Commercial Joint Stock Bank (Habubank)'s shareholders' meeting recently approved a plan to list shares on Hochiminh Stock Exchange (STC) in Q3 or Q4, 2010 and issue 1.05 trillion dong of convertible bonds.
The conversion duration will be one year with the conversion ratio of 1:10 (one bond at the face value of 100,000 dong per bond will be converted into 10 ordinary shares at the face value of 10,000 dong per share).
The coupon rate will be decided by the bank's director board in accordance with the State Bank of Vietnam (SBV)'s regulation.
The time to issue these bonds is scheduled in H2, 2010.
Whole 10.5 million convertible bonds worth 1.05 trillion dong will be issued to the bank's existing shareholders basing on the share holding ratio. The issuing price will be equal to the face value of 100,000 dong per bond.
With 1.05 trillion dong being raised from the bond issuance, the bank will support some 70 percent or 735 billion dong to the bank's working capital, 10 percent or 105 billion dong for investments and joint ventures, and 20 percent or 210 billion dong is to invest in infrastructure of the bank.
In addition, the bank's shareholders' meeting also agreed to change operation model of Habubank Securities one member Ltd Co to a joint stock company. The company's chartered capital will be 150 billion dong. Of which, Habubank holds 11 percent stake, Habubank's existing shareholders hold 49 percent and 40 percent remaining held by Habubank's employees.
Till December 31, 2009, Habubank posted 3.251 trillion dong of total assets with chartered capital of three trillion dong.
In 2010, the bank targets to earn 650-690 billion dong of pre tax profit, overdue debt ratio at less than 3 percent and 12-15 percent dividend.
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