Shipbuilder plans $582 million bond issuance to up capital

Work is under-way on a 6,500 DWT ship of Pha Rung Shipbuilding Co, an affiliate of Viet Nam Shipbuilding Industry Group (Vinashin). Vinashin plans to issue nearly US$582 million worth of bonds next year. — VNA/VNS Photo Anh Ton

HA NOI — Viet Nam Shipbuilding Industry Group (Vinashin), the largest shipbuilder and industrial conglomerate in Viet Nam, plans to issue nearly US$582 million worth of bonds next year.

The country’s general director Nguyen Quoc Anh said the bonds would raise capital for its projects; VND3 trillion ($181.8 million) would be issued domestically while $400 million would be mobilised internationally. The issuance was approved in principle by Deputy Prime Minister Nguyen Sinh Hung last month.

The company is having its 2007 and 2008 accounts audited in preparation for the bond issuance. KPMG Limited, one of world leading auditing and advisory firms, signed a contract to do the audit last Friday, said Anh.

Chairman of Vinashin, Pham Thanh Binh, could not be reached yesterday for further comments.

Vinashin’s total production value reached nearly VND26.3 trillion ($1.6 billion) in the first nine months of the year, up 69 per cent over the same period last year. Nine-month turnover attained was more than VND19.6 trillion ($1.18 billion), increasing 71 per cent year-on-year.

At the end of last year, Vinashin reported that it had VND81 trillion ($4.9 billion) in total assets and VND6 trillion in ownership capital.

The wholly State-owned group now represents over 80 per cent of Viet Nam’s domestic shipbuilding capacity. It offers a diversified spectrum of products including shipbuilding, ship repairs, shipping and logistics, civil and offshore construction and financial and research services. —