Phu Nhuan Jewelry JSC (PNJ) has decided it will not sell 20 million shares to the company's current shareholders, local media reported yesterday.
The plan was announced early this month to raise the company's capital by 20 per cent to VND1.2 trillion (US$52.4 million).
Instead, PNJ will issue bonds this year, which will be worth a maximum of VND500 billion ($22.2 million), valued at VND1 million ($44.4) per bond and will mature within one year.
The amount of money collected from the bond issuance will be spent on restructuring VND350 billion ($15.6 million) of the company's short-term loans and developing a retailer network, which is worth VND150 billion ($6.6 million). The bonds will be divided into two types – a secured bond, which are stakes owned by shareholders with benefits such as dividends and rights to purchase shares, and non-secured bonds. The bond interest rate will be based on the market interest rate at the issuance date and will be fixed until the maturity date.