Vinacomin raises $236.8 mil in bonds for underdeveloped and new projects

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Vietnam's mining group Vinacomin has raised VND5 trillion (US$236.8 million) in bonds, money its deputy director Nguyen Van Bien said the state-owned group plans to use on underdeveloped and proposed projects.

Vietcombank Securities Co. said the issuance of the five-year bonds with a value of VND1 billion each was the biggest in value in the history of state-owned firms' bond issuances.

This also marked a recovery for corporate bonds on a market in which government bonds play a domineering role, the firm said.

Last year, Vinacomin announced it would issue VND3 trillion in bonds, but it ended up only raising VND500 billion.

The group owns the Vietnam's first bauxite processing plant Tan Rai, which is undergoing a trial period and is set to go into operation by this year's end.

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Vinacomin's second plant, Nhan Co, is set to be completed and go on stream by next year's third quarter.

The group said late last month that it had been plagued by capital shortages for the two projects whose investment cost was estimated at VND30 trillion, according to Nguyen Thanh Son of Vinacomin.

In the first three quarters, the group's sales revenues rose by 2 percent year-on-year to VND67 trillion.

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