The country's largest mining firm, Viet Nam National Coal and Mineral Industries (Vinacomin), plans to issue domestic bonds this year at VND1 billion (US$48,000) each.
HA NOI – The country's largest mining firm, Viet Nam National Coal and Mineral Industries (Vinacomin), plans to issue domestic bonds this year at VND1 billion (US$48,000) each.
Chairman of the group's member council Tran Xuan Hoa said the capital mobilised from the bond issuance would be used to boost investment, business and production operations.
The group pledged it would manage and use the capital in accordance with its set purposes. The 2012 bonds would be a safe and effective investment, it said.
As part of a joint venture, acting as an issuance agent, Deputy General Director of Viet Nam Bank for Industry and Trade (Vietin Bank) Le Duc Tho confirmed that Vinacomin's 2012 domestic bond issuance would follow the country's regulations as well as correspond with international standards.
The bonds would enjoy floating interest to be paid annually, he said.
Deputy General Director of Vinacomin Nguyen Van Bien said his group would use the capital for projects in the 2011-15 period, which had been already approved by the Prime Minister. These projects were very important in contributing to ensure the economy's need for coal and natural minerals and national energy securities as well as economic development.
A report made after auditing showed the group's revenue reached VND87.6 trillion ($4.3 trillion) in 2011, making a profit of VND8.6 trillion ($413 million). Nearly 137,000 workers had an average monthly salary of VND8 million each.
The group is estimated to earn VND96 trillion ($4.6 trillion) this year.
At present, Vinacomin has been exploiting 23 open-cast coal mines and 46 coal pits. An alumina production factory, the first of its kind in Viet Nam, will come into operation by the fourth quarter of this year. Another will be operational at the same time next year.
The group has five electricity plants with a total capacity of 1,110MW and is building four others with a total capacity of 720 MW. – VNS