Vincom bond issue fulfils hopes

Saturday, May 10, 2008
The Ho Chi Minh Stock Exchange (HOSE) listed firm, Vincom Joint Stock Co reported on May 7 that its first corporate bond sale gained success with 2 trillion VND (125 million USD) in bonds were sold out under the consultancy of Agribank Securities Co.

The bonds issued on May 6, 2008 have a term of five years and a face value of one billion dong each. The coupon rate for the first year is 16% per annum and that of following years is calculated based on one-year deposit rate of four banks (Agribank, Vietcombank, Bidv and Vietinbank) plus 4% per annum. The coupon rate payment will be implemented on May 6 every year.

The money raised through this tranche will be used for a Ho Chi Minh City commercial complex project including trade centres, restaurants and high-rise buildings.

“We successfully raised 1 trillion VND (62.5 million USD) through bond issuance last year and realized that the bond issue was an effective channel for capital mobilization,” an official from Vincom’s planning division said.

He added that the company would continue issuing bonds as a safe, reliable method to mobilise capital for its future project.

“We also want to diversify the channel of money mobilization. Then our projects will be ensured of being implemented on time,” the official said.

In October 2007, Vincom raised 1 trillion VND (62.5 million USD) for this complex, also through bond issuance. The underwriter for this issuance was the Bank for Investment and Development of Vietnam (BIDV) and ANZ.