VNStockNews.com - Vietnam Commercial Bank for Industry and Trade, or VietinBank, has been approved to issue bonds worth US$500 million in total to the international market, said the bank’s deputy general director Le Duc Tho.
Tho said Vietinbank was now completing the scheme and procedures for the bond issuance, with the consultancy of the financial institutions HSBC and Barclays. The bank’s international bonds will have the terms of five years and ten years.
“We are striving for issuance within this year, or at another time if the situation now is unfavorable, because the issuance and prices of the bonds depend much on the market situation,” Tho said.
He informed the bank would launch road shows for the issuance in major financial markets in America, Europe, Asia and the Middle East. This would provide an opportunity for potential investors to acquire information about the issuance.
The capital mobilized from the bond issuance is estimated to be used for lending to local enterprises, especially those operating in the priority sectors such as machinery and equipment import, technology and manufacturing, Tho added.
If successful, this would be the first international bond issuance of a Vietnamese bank ever.
After the bid opening on August 29, HSBC and Barclays won the consulting services package for the issuance of US$500 million worth of international bonds.
Regarding the concern that local enterprises are having difficulties in borrowing capital from international markets after the Vinashin incident, a consultant of international trade law said healthy firms do not need to worry.
The incident might have impacted on State-owned corporations, with Vietnam National Coal and Minerals Group (Vinacomin) failing an international bond issuance worth US$500 million, he told the Daily. However, the healthily operating firms with efficient capital use will have no difficulty accessing the international loans.
