Lao Viet Bank to buy Lao Government bonds

Wednesday, Jul 23, 2014 16:09

Reperesentatives of Lao Viet Bank and Lao Ministry of Finance sign a contract that allows the bank to buy the Lao Government's bonds worth of US$30 million.  — Photo

HA NOI (Biz Hub) — Lao Viet Bank will spend US$30 million to buy Lao Government's bonds in three and five-year terms, reports the Dau Tu (Investment) Newspaper.

The contract was signed between representatives of the Lao Viet Bank and Lao Ministry of Finance in Ha Noi on July 23.

Lao Viet Bank is a joint venture between Vietnam Investment and Development Bank (BIDV) and Banque Pour Le Commerce Exierieur Lao (BCEL), with contributed capital of 65 per cent and 35 per cent, respectively.

The bonds will be issued in three instalments. In the first, Lao Viet Bank will buy bonds worth of $10 million, half of which will be for three year terms and the remainder in a term of five years.

Chairman of BIDV, Tran Bac Ha said BCEL was planning to transfer 10 per cent of its share to the third shareholder at Lao Viet Bank in December this year.

Meanwhile, Lao Viet Bank has been completing legal procedures to carry out its plans to raise registered capital to $80 million this year and $100 million by 2015.

The Lao Viet Bank's assets are worth of $525 million. It is ranked second in Laos in terms of registered capital and the fourth in terms of asset value and credit market share in Laos as well.

In June this year, BIDV, Lao Viet Bank and Lao Government signed a credit contract worth $53.16 million to carry out a road project in Lao northern Houaphanh Province, with a lending term of 15 years.

The 67-kilometre two-lane road, connecting Tha Lau and Sam Tay districts, will link up with Viet Nam's road systems in the central province of Thanh Hoa. — VNS

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