SBV approves Lien Viet Post Bank's plan of convertible bonds issuance in 2017

Accordingly, SBV Governor approved Lien Viet Post Bank’s plan of convertible bonds issuance in 2017 with the following contents: (i) The maximum of total face value is 2,000 billion VND (Two trillion VND); (ii) The purpose of issuance, the buyer of convertible bonds, the name of the bond, currency issuance, the term, the form of issuance, the place of issuance, method of payments for both principal and interest, the place for interest payment, terms and conditions for convertible bonds, conversion ratio of bonds into shares, conversion price must comply with the Plan for the 2017 convertible bonds issuance attached with Official Letter No. 6512/2017/LienVietPostBank dated June 15th, 2017 of Lien Viet Post Bank; (iii) The bonds’ interest rate is determined by Lien Viet Post Commercial Joint Stock Bank in accordance with the market interest rates and SBV regulations on interest rates in each period, to ensure Lien Viet Post Bank’s business efficiency and operational safety.

In addition, Lien Viet Post Bank has the following responsibilities: (i) Implementing the 2017 convertible bonds issuance in compliance with the current regulations approved by the Governor of the State Bank of Vietnam regarding promissory notes, treasury bills, certificates of deposits, domestic bonds issued by the credit institutions and other provisions of Law on securities; (ii) Using the capital to issue convertible bonds in 2017 for proper purposes, ensuring the efficiency and safety of business operations; (iii) The issuance of convertible bonds for foreign investors must comply with the Decree No.01/2014/ND-CP dated January 3rd, 2014 on foreign investors' purchase of shares of Vietnamese credit institutions. In case the foreign investor owns more than 5% charter capital of Lien Viet Post Bank, Lien Viet Post Bank is responsible for completing the procedures and dossiers as stipulated in Decree 01/2014/ND-CP and Circular 38/2014/TT-NHNN dated December 08th, 2014 on dossier, order and procedures for approving the foreign investor’s purchase of Vietnamese credit institution’s shares; and submit to the State Bank of Vietnam for approval before issuing convertible bonds; (iv) In case the existing domestic investors and shareholders become a major shareholder of Lien Viet Post Bank as the result of convertible bonds issuance, Lien Viet Post Bank must submit to SBV for review and assessment prior to the issuance; (v) Completing all required procedures, dossiers according to current regulations and submit to SBV for consideration and approval in case raising charter capital of the source of convertible bonds issuance, to ensure the share ownership ratio of shareholders and other individuals after converting bonds into shares in compliance with the law.

This Decision takes effect from the date of signing.

VA