Twelve institutional investors who bought VND2 trillion (US$95.2 million) worth of one-year convertible bonds from Saigon Securities Inc (HoSE: SSI) last year are reluctant to convert the bonds into common shares due to the dwindling value of SSI share prices on the market.

SSI closed yesterday's trades at just VND21,400 (about $1) per share, but investors who opted to convert the bonds to shares would be acquiring shares at the equivalent of VND35,639 ($1.70) per share – fully 66.5 per cent higher than the stock market price.
If the bondholders do not convert the bonds into shares, SSI will have to repay the value of the bonds.
March 24 is the deadline for bondholders to register to convert and March 28 will be the day for SSI to issue repayment to those who do not opt to convert. The company has affirmed that it has sufficient money to repay the bondholders.
According to SSI financial statements at the end of last year, the company's cash and other liquid assets (Excluding investor deposits) totalled more than VND1.3 trillion ($61.9 million).
However, SSI Deputy Director Nguyen Hong Nam said the firm realised that stock market conditions were unfavourable and was prepared to return all money to bondholders.
"After redeeming the bonds, we will still have enough cash and other resources to operate as normal," Nam said.
SSI share prices have lost over half of their value in the year since the bond issue. In March 2010, they traded at VND40-45,000 ($1.90-2.15) per share.
Analysts have suggested that firms issue bonds at longer terms, such as three years, with a partial conversion rate over the time, in order to reduce risks of stock price fluctuations.