Pham Nhat Vuong's shareholding in Vingroup decreases due to new share issuance. – Photo news.zing.vn

HA NOI (Biz Hub) – Vingroup Chairman Pham Nhat Vuong's shareholding in the group (VIC-HOSE) has been reduced to 29.8 per cent from 30.16 per cent.

This has happened because the group has issued 17 million shares, equivalent to VND169.9 billion (US$8 million), to convert international bonds into shares, business news website ndh.com has reported.

At present, Vuong holds 423.2 million of shares of Vingroup. His wife Pham Thu Huong, who is also the group's vice-chairwoman, has about 73 million VIC-HOSE shares, equal to 5.14 per cent of the group's capital.

In addition, the Vietnam Investment Corporation (Vinacorp), half of which is owned by Vuong, has acquired more than 180 million of Vingroup's shares. With the new shares being issued, VIC's share in the ownership of Vinacorp has dropped by 0.35 per cent to reach 12.68 per cent.

The total number of VIC shares owned by Vuong and his family members accounts for 47.62 per cent of Vingroup's charter capital, according to ndh.com.

A report in March from Vingroup's management board said that the group had successfully raised US$300 million by issuing five-year-term international convertible bonds, listed on the Singapore Exchange (SGX). The date of maturity of the international bonds is April 3, 2017.

The unsecured convertible bonds have an annual interest rate of five per cent. The owners of the bonds can convert them into shares on October 3 every year from 2012 to 2016. On June 30, 2014, the total number of bonds converted into shares was worth $2.1 million.

The State Securities Committee has decided to keep the proportion of shares owned by foreign investors at Vingroup at 29 per cent of the group's chartered capital. Currently, the share of foreign investors is 14.9 per cent.

The funds raised from the issue of bonds will be added to Vingroup's working capital and invested in the company's projects and other projects. – VNS