Vinacomin ready to dig deep

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Báo Đầu Tư English - 67 month(s) ago 16 readings

Vinacomin ready to dig deep

The country's largest mining firm plans to issue $144 million in domestic bonds this year to dig deeper into its operating markets.

The country's largest mining firm plans to issue $144 million in domestic bonds this year to dig deeper into its operating markets.

Vinacomin last week announced it will issue 3,000 domestic bonds at VND1 billion ($48,000) each with terms of five to seven years.

Tran Xuan Hoa, chairman of the group's member council, said the mobilised capital would be used to boost investment, business and production operations.Its issuance advisors will include Vietinbank and ANZ.

Vinacomin deputy director Nguyen Van Bien said a brighter business environment on the horizon encouraged the firm to issue shares this year.

"Despite slow economic growth, interest rates have begun to decrease, inflation is cooling and enterprises will have opportunities to borrow money," said Bien.

He said the group would use the capital for projects during 2011-15, already approved by the prime minister, to ensure the economy's need for coal and natural minerals was satisfied.

Vietinbank deputy director Le Duc Tho confirmed that Vinacomin's 2012 domestic bond issuance would follow the country's regulations and the bonds would enjoy floating interest to be paid annually.

According to Vinacomin's audited report, the group reached revenue of VND87.6 trillion ($4.3 billion) in 2011, up by 25.8 per cent against 2010. Its profit gained VND8.6 trillion ($413 million) last year and137,000 workers had an average monthly salary of VND8 million each.

The group is estimated to earn total revenue of VND96 trillion ($4.6 billion) this year.

In late April, Moody's Investors Service downgraded the outlook for Vinacomin from stable to negative. However, the group disagreed, adding that it would release its official financial report and request the ratings agency to revise its assessment.

Formerly, the group planned to issue $500 million international bonds. However it had to delay the plan for many years due to many problems related to state owned groups' operation efficiency.

At present, Vinacomin has exploited 23 open-cast coal mines and 46 coal pits. It has an alumina production factory, the first of its kind in Vietnam, which will come into operation by 2012's fourth quarter and another will be operational by the same time next year.

The group has five electricity plants with a total capacity of 1,110 megawatts and is building four others with a total capacity of 720MW.

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