Vietnam's Techcombank, 20 percent owned by HSBC Holdings Plc , said on Friday it would raise VND3 trillion (US$153.9 million) by selling 10-year convertible bonds later this month.
The debt, to be issued to existing shareholders, would carry a zero percent coupon during the first five years and a planned annual coupon of 15 percent for the remaining period, the Hanoi-based bank said in a statement.
However, the coupon could be lower from the sixth year if the central bank imposes a ceiling lower than 15 percent, Techcombank, or the Technological and Commercial Bank, said.
Proceeds will help Techcombank supplement its Tier 2 capital to boost its financial and business capacity, it said.
Shareholders need to register through Dec. 4 to qualify for the right to buy the debt, which was being offered at a ratio of 4.327 bonds for every 100 shares owned. Payment can be made between Dec. 5 and Dec. 24.
Yield fixings on 10-year government bonds eased to 11.2539 percent on Thursday from 11.3714 percent the previous day, Reuters data showed.
Techcombank is the fifth-largest bank in term of assets among Vietnam's 39 partly private lenders. Its total assets at the end of June rose 16.6 percent from December 2009 to VND107.91 trillion ($5.54 billion).