ID :
104308
Wed, 02/03/2010 - 11:26
Auther :
Shortlink :
http://m.oananews.org//node/104308
The shortlink copeid
Kinh Bac City Development Holding Co to issue 200 million USD worth of convertible bonds
HCM City (VNA)- Kinh Bac City Development Holding Co, listed on the HCM Stock Exchange, will issue 200 million USD worth of convertible bonds overseas in accordance with an agreement signed last week with Credit Suisse.
The bonds will have a five-year maturity and an annual interest rate of 6-6.2
percent.
They will be converted into shares at a projected value at 130 percent of the
average price during 10-15 continuous trading sessions prior to the issue date.
Credit Suisse, Switzerland’s second largest bank, will be the issuing
underwriter for Kinh Bac’s bonds.
“This is the first time Kinh Bac has issued international bonds,” company
chairman Dang Thanh Tam said, revealing that Credit Suisse took the initiative to
offer the collaboration.
“Credit Suisse studied KBC carefully and found it qualified to issue bonds
overseas.”
The bank had already secured buyers for the bonds and would carry out the issue
soon, after which they would be listed on the Hong Kong Stock Exchange or another
suitable market, Tam said.
The capital raised through the issue would be invested in infrastructure
development of industrial zones and real estate projects in 2010, such as the
five-star Lotus Hotel on an area of 80,000 sq.m near the National Conventional
Centre and the Kinh Bac Financial Tower at 1A Lang Ha Street in Hanoi.
Last year the company issued corporate bonds worth a total of 2 trillion VND
(106.4 million USD). Along with the additional 200 million USD worth of
convertible bonds, KBC should have sufficient financial resources for carrying out
its planned property development projects this year, Tam said.
The company earned a net profit of 614.3 billion VND (32.7 million USD) last year,
nearly double the target set for the year. It was expected to pay a 30-percent
dividend in shares to existing shareholders early this year and planned to pay
another 30 percent at year end.
KBC shares closed Feb.1’s trading at 58,000 VND (3.10 USD) per share. The
company expects share value to rebound to about 70,000 VND (3.70 USD) once the
VN-Index returns to a level of around 550 points.-Enditem
The bonds will have a five-year maturity and an annual interest rate of 6-6.2
percent.
They will be converted into shares at a projected value at 130 percent of the
average price during 10-15 continuous trading sessions prior to the issue date.
Credit Suisse, Switzerland’s second largest bank, will be the issuing
underwriter for Kinh Bac’s bonds.
“This is the first time Kinh Bac has issued international bonds,” company
chairman Dang Thanh Tam said, revealing that Credit Suisse took the initiative to
offer the collaboration.
“Credit Suisse studied KBC carefully and found it qualified to issue bonds
overseas.”
The bank had already secured buyers for the bonds and would carry out the issue
soon, after which they would be listed on the Hong Kong Stock Exchange or another
suitable market, Tam said.
The capital raised through the issue would be invested in infrastructure
development of industrial zones and real estate projects in 2010, such as the
five-star Lotus Hotel on an area of 80,000 sq.m near the National Conventional
Centre and the Kinh Bac Financial Tower at 1A Lang Ha Street in Hanoi.
Last year the company issued corporate bonds worth a total of 2 trillion VND
(106.4 million USD). Along with the additional 200 million USD worth of
convertible bonds, KBC should have sufficient financial resources for carrying out
its planned property development projects this year, Tam said.
The company earned a net profit of 614.3 billion VND (32.7 million USD) last year,
nearly double the target set for the year. It was expected to pay a 30-percent
dividend in shares to existing shareholders early this year and planned to pay
another 30 percent at year end.
KBC shares closed Feb.1’s trading at 58,000 VND (3.10 USD) per share. The
company expects share value to rebound to about 70,000 VND (3.70 USD) once the
VN-Index returns to a level of around 550 points.-Enditem
