Bank issues convertible bonds to partners

HCM CITY — An Binh Bank (AB Bank) will issue VND600 billion (US$28.6 million) worth of convertible bonds to strategic shareholders today.

The International Finance Corporation (IFC) will buy VND480 billion ($5.7 million) worth of bonds, convertible into a 10-per-cent stake in the bank after two years. Strategic shareholder May Bank will buy the remaining VND120 billion ($6.15 million) worth of bonds, aiming to maintain its current 20-per-cent stake in An Binh Bank.

"Funds raised through this issue will be allocated to the bank's medium- and long-term capital and to upgrade infrastructure," said bank chairman Vu Van Tien.

The bonds will have a face value of VND1 million $47.6 and pay a yield of 6.9 per cent per year. One bond will be convertible into 100 shares.

AB Bank has also closed registration for bonus shares to be issued at a 1:10 ratio. The bank is attempting to raise funds in order to increase charter capital from VND3.4 trillion to VND3.8 trillion ($182.4 million), with a further increase to VND4.8 trillion ($228.6 million) within two years.

Source: vnagency.com.vn