Vincom to sell $125 mln bonds on April 18

Tuesday, April 8, 2008
Property developer Vincom (VIC), Viet Nam's seventh-largest listed firm, said on Tuesday it would raise 2 trilion dong ($125 million) via a bond sale later this month to further fund projects in Ho Chi Minh City.

Vincom started work on building a office and hotel complex, underground parking and a commercial centre in Ho Chi Minh City last year with investment totalling $300 million.

The five-year bonds would be issued on April 18 and advised by Agriseco, the securities broking arm of Viet Nam's largest lender, Agribank, the Hanoi-based Vincom said in a statement.

Vincom said the bonds would carry a fixed coupon for the first year and a floating rate for subsequent years, subject to agreement with investors later, while the total funds expected could expand to 2.6 trillion dong depending on actual demand.

Proceeds would go to the construction of the projects in Ho Chi Minh City's downtown area, Vincom's management board said in a separate document seen by Reuters.

The bonds issued this month will be the company's second corporate debt on sale. Last October, Vincom raised 1 trillion dong via a five-year bond to finance the Ho Chi Minh City's $300 million property project.

The debt carried an annual coupon of 10.3%.

Shares in Vincom closed up 1.69% at 90,500 dong ($5.67) each on the Ho Chi Minh Stock Exchange (HOSE) on Tuesday, valuing the company at nearly $454 million, the seventh-largest among the 153 listed firms on the exchange. (Reuters)