Vietnam's Kinh Bac City plans VND2 trln bonds

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Kinh Bac City Development Share Holding Corp., Vietnam's third-biggest property company by market value, plans to sell VND2 trillion (US$103 million) of bonds in the second quarter to fund property projects.

"The economy is expected to keep recovering strongly this year and it's time to borrow money for investment," Chairman Dang Thanh Tam said in an interview in Hanoi Monday.

Kinh Bac City will offer five-year securities with fixed-or floating-rate coupons depending on the outlook for interest rates, he said. Money from the notes would help finance three construction projects in Hanoi, Hai Phong and Bac Ninh province.

Vietnam's economy expanded 6.8 percent last year, the fastest pace since 2007, fueling price increases as a weakening currency increased the cost of imported goods. The Communist Party is seeking growth of as much as 8 percent until the year 2020, and wants to almost triple per capita income to $3,000 in that time, General Secretary Nong Duc Manh said Jan. 12.

Kinh Bac City, based in Hung Yen province, rose 0.8 percent to VND36,800 as of 9:58 a.m. local time, the highest since Sept. 9. It dropped 12 percent in 2010 compared with a 2 percent decline in the benchmark VN Index.

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