FECON to issue convertible bonds worth $1.49 million

FECON Foundation Engineer and Underground Construction JSC (FECON) will issue convertible bonds worth VND32.5 billion (US$1.49 million) for the Finnish Mutual Fund Elite (Non-UCITS). These convertible bonds will be issued for VND20,400 each, with an annual interest rate of six per cent and a three-year maturity period. The company’s partner in this deal – Mutual Fund Elite – will have to make at the most three payments to complete the deal. The first payment will be a maximum of 50 per cent of the deal and will be made from the 15th to the 18th of the month after the bonds are issued. The Finnish investment fund will have to complete the deal by making two payments between the 21st and 24th of the month after the bond issuance. This issuance is a part of a plan, which was approved in the FECON shareholder meeting in 2014 and 2015, to issue convertible bonds worth VND500 billion ($22.9 million) to increase the company’s capital. In order to achieve the target, FECON earlier issued bonds worth VND195.6 billion ($8.97 million) for the Japan Southeast Asia Growth Fund LP, a member of the Development Bank of Japan, and bonds worth VND100 billion ($4.59 million) for the Vietcombank Securities Corporation (VCBS). The company has been negotiating with other strategic investors to sell the rest of the convertible bonds.