The State Bank of Viet Nam (SBV) has ratified LienVietPostBank’s proposal of convertible bonds issuance in 2017.

According to the plan, the maximum total face value of the bonds is worth VNĐ2 trillion (US$87.7 million).

The bonds’ interest rate is determined by LienVietPostBank in accordance with market interest rates and SBV regulations on interest rates in each period, besides ensuring the bank’s business efficiency and operational safety.

Lien Viet Post Bank will have to implement the 2017 convertible bonds issuance in compliance with the current regulations approved by the SBV Governor regarding promissory notes, treasury bills, certificates of deposits, domestic bonds issued by the credit institutions and other provisions of the Law on Securities.

Capital collected from the issue must be used for proper purposes, ensuring the efficiency and safety of business operations.

The issuance of convertible bonds for foreign investors must comply with Decree No 01/2014/ND-CP, dated January 3, 2014, on foreign investors’ purchase of shares of Vietnamese credit institutions.

In case the foreign investor owns more than 5 per cent of charter capital, Lien Viet Post Bank is responsible for completing the procedures and dossiers as stipulated in Decree 01/2014/ND-CP and Circular 38/2014/TT-NHNN, dated December 8, 2014, on dossier, order and procedures for approving the foreign investor’s purchase of Vietnamese credit institution’s shares, and submit to the State Bank of Vietnam for approval before issuing convertible bonds.

In case existing domestic investors and shareholders become a major shareholder of Lien Viet Post Bank as the result of convertible bonds issuance, the bank must also submit to SBV for review and assessment prior to the issuance.

The bank will also have to complete all required procedures and dossiers according to current regulations and submit to SBV for consideration and approval in case of raising charter capital from the source of issued convertible bonds, to ensure the share ownership ratio of shareholders and other individuals after converting bonds into shares is in compliance with the law. – SBV