Habubank pumps up its muscles

September 14, 2011 | 15:46

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Habubank raised its chartered capital by more than VND1 trillion ($48.78 milion) through a conversion of convertible bonds.

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The lender converted 10.5 million convertible bonds, valued at VND1.05 billion, ($48.78 milion) into common shares in August 2011, raising its capital to VND4.05 trillion ($197.56 million) from VND3 trillion ($146.3 million).

The bonds were issued to Habubank’s existing shareholders last year to support the lender’s long-term capital balance sheet. The capital increase was aimed at improving the bank’s financial capability and financing its network expansion, said Habubank’s chairman Nguyen Van Bang.

“The capital increase is a crucial requirement for the bank to enhance its competiveness with banking operation safety regulations now tightened and the business environment changing very fast,” said Bang.

The new 105 million shares are expected to be listed on the Hanoi Stock Exchange in October, 2011.

By Hai Linh

vir.com.vn

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