Vietnamââ‚¬â„¢s partly private Petrolimex Group Bank plans to sell one-year convertible bonds on the domestic market to raise VND1 trillion to boost its financial strength, it said in a statement.
The bonds will carry a prepaid coupon of 10 percent and proceeds will supplement the registered capital of PG Bank, based in the Mekong Delta province of Dong Thap, the statement on the State Securities Commissionââ‚¬â„¢s website said.
The debt, which will be converted into shares, will help PG Bank achieve a government target for banks to have minimum registered capital of VND3 trillion at the end of 2010.
The bank will sell the bonds to the public at par with a face value of VND100,000 after it gets approval from the securities commission, Vietnamââ‚¬â„¢s stock market watchdog.
Petrolimex, Vietnamââ‚¬â„¢s top oil product importer, owns 40 percent of PG Bank, followed by Saigon Securities Inc with a 9.98 percent stake.