Sai Gon-Ha Noi Securities Joint Stock Co’s managing board has approved a plan to issue bonds worth VND600 billion (US$26.3 million) to raise capital to finance its margin lending business.

The bonds, with the face value of VND1 billion each, have a two-year maturity period and no pledged collateral.

The interest rate for the first six months is fixed at 8 per cent per year and rates for the next six-month terms will be floated based on the average deposit interest rates of four banks -- BIDV, Vietcombank, Vietinbank and Agribank -- plus a margin of 1.5-2.5 per cent per year.

The issue will be offered in a private placement this month.

The brokerage firm is expected to collect VND600 billion to supply capital for the company’s margin lending activity.

In the last quarter of 2016, Sai Gon-Ha Noi Securities (sticker SHS) unexpectedly surpassed Saigon Securities Inc (SSI) to become the leading brokerage with the highest market share on the Ha Noi Stock Exchange.

The company’s share price has climbed by 67 per cent this year to VND7,700 per share.

Last year, the company posted VND86 billion net profit. – VNS