Vietnam News Service reported that Mr Nguyen Sinh Hung Deputy Prime Minister has instructed the finance ministry to consider implementing Vinashin's proposal to spend USD 300 million in sovereign bonds to pay off its debt at Natixis bank.

It may be noted that Viet Nam earlier this year raised USD 1 billion from its second global bond sale, where it offered 10 year bonds at 6.95% yields. These bonds were designated to support energy and infrastructure projects that will support growth in an economy that suffers from a foreign currency shortage, high inflation and a widening trade deficit.

Vinashin was instructed to work closely with Viet Nam National Oil & Gas Group to negotiate with Natixis bank concerning the debt's bottom value and payment plans.

It has transferred a portion of its debt payment obligations to PetroVietnam in accordance with Decision No926 that was passed by the Prime Minister on June 18th 2010.

Vinashin's debts totaled VND 86 trillion in June 2010 against that of company's VND 90 trillion in charter capital. The company's total assets are estimated at VND 104 trillion.

Vinashin was the single recipient of the proceeds from Viet Nam's maiden USD 750 million sovereign bond issued in October 2005.

(Sourced from Vietnam News Service)