State-miner sells 1.5tr dong 10-yr bonds

Vinacomin, Vietnam’s largest mining firm, said on Monday December 17 it had sold 10-year bonds worth 1.5 trillion dong on domestic markets to fund power and bauxite projects. Vinacomin issued the debt at an annual coupon of 9.5% on December 11 for maturity on December 11, 2017, chief executive Tran Xuan Hoa said in a statement which gave no details of who bought the bonds.

The unlisted Hanoi-based firm, known formally as the Vietnam National Coal-Mineral Industries Group, said last month it planned to sell bonds worth 3 trillion dong by early 2008.

The Hanoi-based stockbroking arm of partly-private An Binh Bank underwrote the issue and Citigroup was the adviser on the sale.

Vinacomin has interests in coal mining, electricity generation, mining and trading natural resources. Coal accounted for 60% of its revenues in 2006 and 2007.

Vinacomin has said it needed to invest up to 10 trillion dong annually over the coming years in several coal mines, each with annual output of 3-4 million tonnes, as well as in hydro-and thermal power plants.

 

Category: Finance