Vietnam National Coal and Minerals Industries Group (Vinacomin) on May 29 said that the group will issue local currency dominated bonds in 2012 with a total volume of maximum three trillion dong under the consultancy of Vietnam Commercial Joint Stock Bank of Industry and Trade (VietinBank-CTG).
The tenor of these bonds has not been determined as of yet.
The proceeds from this bond issuance will be used to help Vinacomin invest in projects in its five year plan from 2011 to 2015.
Earlier, on April 27, global reputable rating agency, Moody’s Investors Service (Moody’s) downgraded the outlook of Vinacomin from “stable” to “negative”.
In the first five months of 2012, Vinacomin has exploited 21.7 million tonnes of raw coal, or 45 percent of the year’s plan and equalling to the same period last year. Coal consumption reached 16.7 million tonnes (including 5.4 million tonnes of coal for export), equalling to 36 percent of the year’s plan and revenue from coal reached 21.1 trillion dong, equivalent to 31 percent of the year’s target and down 15 percent year-on-year.
Last year, Vinacomin reached 87.6 trillion dong revenue, rising 25.8 percent from 2010.