Vietnam Stock Market News

Advertisements

Random Post

• Domestic steelmakers raise prices, cutting own throat
• Vietnam Seeks to Reduce Imports of Meat Animal Organs
• ANZ seeks buyer for 10 pct stake in Vietnam bank
• Imported cars arent selling like before
• 3G network will be build in Vietnam by Nokia
• Vietsovpetro Discovers New Oil Flow in Cuu Long Basin

Vietnam Stock Market News

Vietnam Business » Vietnam Stock Market News » Decree hopes to protect holders of convertible bonds

Decree hopes to protect holders of convertible bonds

A new Government decree requires the sellers of convertible bonds to clarify all risks for potential buyers, as well as propose a risk-provision plan to protect the interests of existing bond holders whenever additional shares or bonds are issued.

Government Decree 84/2010/ND-CP, issued pursuant to the Law on Securities, is intended to help bond buyers calculate risk and to encourage companies to more responsibly honour their obligations. Holders of convertible bonds previously faced short-term risks if the market price of an enterprises shares fell below the conversion price. "I think the decree is a good move because it draws clear legal borders and makes convertible bond issues more transparent," said Hoa Binh Securities Co deputy director Nguyen Huy Duong. It also demonstrated the improvements in Governments and the State Securities Commissions control over the market, Duong said. The decree has been issued at a time when the availability of bank credit is increasingly limited and convertible bonds are being regarded by enterprises as an alternative way to raise capital. As of mid-July, about 17 listed firms had issued or planned to issue convertible bonds, most through private offerings or to strategic or institutional investors. Convertible bond issues totalled about 10 trillion VND (526.3 million USD) in the first six months of the year, with an average term of two years and a coupon of 8-10 percent per year, according to Au Viet Securities Co. Higher corporate bond coupons were increasingly attractive to investors since bank deposit interest rates now hovered at around 11.5 percent per year. Vietnam Bond Market Association general secretary Do Ngoc Quynh forecasted that the growing medium- to long-term demand of enterprises would continue to drive the growing issue of corporate bonds. Convertible bonds ensured interest to their holders even when stock prices fell, but when the prices of shares were relatively high, convertible bonds gave investors a chance to convert and invest in shares, Quynh said.

Vietnam Business And Financial News Network. Source [english.vietnamnet.vn]

More Vietnam Stock Market News:

• Bottom-catching buys lift indices
• State construction giant to make IPO
• Vietnam Stock put on hold
• Dreary trade on UPCoM, OTC markets
• Foreign investors now $8 billion worth of Vietnams securities
• Vietnam stock market expected to surge in Q3
• Equities leveraging to increase
• Shares rise on improved mood
• Power cuts drive brokers and investors crazy
• Investment funds eye OTC shares

Popular Vietnam Business News

Deposit Interest Rate Rises to 10.2 Per Cent

Although the prime rate set by the State Bank of Vietnam (SBV) was kept unchanged at 7 per cent per annum in July, many banks still revised the borrowing rate.

Prospect for higher FDI

. After a standstill period due to bad impacts of the global economic slow down, more and more foreign companies have come to Vietnam to seek investment and business opportunities.

Leading B2B websites in Vietnam

. More than 100,000 Vietnamese firms have to date joined www.alibaba.com, one of the global leaders in business-to-business (B2B) e-commerce Websites, said China’s Alibaba Group. .About 4,000 Vietnamese small- and medium-sized

Vietnam airline market takes off

Economic recovery is set to spark demand, competition and reasonable fares on Vietnam�s air travel market, industry insiders say. Vo Huy Cuong, head of the Civil Aviation Administration of Vietnam�s

Workers quit factories for more cushy jobs, labor shortage ensues

After the Tet holidays, Tran Thi Phuong from northern Nam Dinh Province did not return to the Hanoi-based garment firm where she had worked for several years. The 28-year-old woman

Vietnam warned of inflation and trade deficit

The trade deficit is likely to prompt a further fall of the Vietnamese dong this year while food, housing and transport costs are leading inflation higher, according to a Standard

Uy Nam Construction Investment Joint Stock Co (Unicons) EPS at 16,644 dong/share in 2009

Uy Nam Construction Investment Joint Stock Co (Unicons) has recently reported audited fiscal report in 2009 with 663.01 billion dong in revenue from sales and service provision, up 24.16 percent

Vietnams export levels bear little impact from European debt crisis

According to trade experts under the Ministry of Industry and Trade, the impact of the debts crisis in Europe is not all that significant because the Vietnamese dong is still

Advertisement