Vietcombank, Vietnam’s largest commercial bank by market capitalization, plans to issue bonds worth 6 trillion dong ($256 million ) this year while a subsidiary of Vietnam Electricity Corporation Genco 3 will offload its 30.6 per cent stake in Vinh Son Song Hinh Hydroelectric Joint Stock Company.
Vietcombank to offer $256m of bonds this year
Vietnam’s largest commercial bank by market capitalization, Vietcombank, plans to issue bonds worth 6 trillion dong ($256 million) this year to fund operations and consolidate long-term capital, according to an announcement.
Under the plan, the bank will issue 60 million five-year bonds at 100,000 dong ($4.35) per unit with a coupon rate of 5.4 per cent. They will be non-convertible, unsecured and without warrants, it said.
The issuance is aimed at bolstering the firm’s operating capital and its VND-denominated loans in medium- and long- term projects.
The Hanoi-headquartered lender last year reported a pre-tax profit of 23.15 trillion dong ($988 million), an increase of 26 per cent year-on-year.
In December, Vietnam’s FMCG giant Masan Group announced plans to issue bonds worth up to 10 trillion dong ($431.5 million) this year. The bond proceeds will be used to expand its business, lend to units and repay a loan.
Genco 3 to sell 30.6% stake in Vinh Son Song Hinh Hydroelectric
Power Generation Corporation 3 (Genco 3), a subsidiary of Vietnam Electricity Corporation (EVN), has announced that it will offload its 30.6 per cent stake in Vinh Son Song Hinh Hydroelectric Joint Stock Company (VSH) to investors in April.
The company will offer 63 million shares for sale at a starting price of 31,931 dong ($1.37) apiece. The auction, which is expected to take place on April 20, will be open to foreign investors, according to a filing with the Ho Chi Minh City Stock Exchange.
Genco 3 is expected to earn over 2 trillion dong ($86 million) from the divestment. It is currently the second-largest shareholder in VSH after Refrigeration Electrical Engineering JSC with more than 102 million shares equivalent to a 49.5 per cent stake.
In 2018, the government had raised 184.8 billion dong ($8.13 million) from the initial public offering (IPO) of Genco 3. The proceeds were a measly 3 per cent of the government’s target of raising at least 6.5 trillion dong ($286 million) from the stake sale.
In a reflection of low investor interest, only 7.45 million shares were sold of the 267 million shares on offer in the auction.