Vietnam's Sacombank to sell 5 trln dong bond

HANOI, June 18 (Reuters) - Vietnam's central bank said on Wednesday it had approved a proposal by Sacombank STB.HM to issue 5 trillion dong ($304 million) in bonds this year.

Ho Chi Minh City-based Sacombank must comply with the dong base interest rate, which was raised to 14 percent on June 11 from 12 percent, to set the yield on the bonds, the central bank said in a statement.

With a 14 percent base rate, banks are able to offer an annual coupon of up to 21 percent.

Sacombank has yet to publish details of its bond issue.

In another directive, the central bank allowed Hanoi-based Military Bank to raise 3 trillion dong in bonds this year. ($1=16,457 dong) (Reporting by Nguyen Nhat Lam; Editing by Alan Raybould)