The bond issuance activities of banks are still very exciting. Three more banks successfully mobilised nearly 2.5 trillion dong from bonds in the last days of August.
Specifically, Lien Viet Post Commercial Joint Stock Bank (LienVietPostBank) issued one trillion dong of three-year bonds on August 26th 2019. The bonds are one billion dong in par value, non-convertible, unsecured and not accompanied by warrants. The interest rate is fixed at 6.6 percent per annum and interest payment term is one time a year. The issuing agent is VNDirect Securities Company. A securities company purchased these bonds.
Meanwhile, on August 31st 2019, Southeast Asia Commercial Joint Stock Bank (SeABank) also successfully issued 350 billion dong of 10-year bonds. They are non-convertible, unsecured with no warrants. The interest rate in the first period is 9.9 percent per annum, and the rate in the subsequent periods is equal to the reference interest rate (average 12-month deposit rates of four major banks) plus three percent per annum. The interest payment period for these bonds is one time per year. Only individual investors purchased the above bonds.
In addition, on August 27th 2019, SeABank also successfully mobilised 149 billion dong out of the 200 billion dong of bonds offered. The term of the bonds is 10 years, interest rate in the first period is 9.9 percent per annum, and equal to the reference interest rate plus three percent per annum in the subsequent periods. No individual investors participated in the offer, and the entire offer value of 149 billion dong was purchased by corporate investors.
On August 27th-28th, Vietnam International Commercial Joint Stock Bank (VIB) mobilised a total of one trillion dong of bonds on a three-year term, at interest rate of 6.3 percent per annum. All of the bonds were owned by corporate investors.
Previously, according to statistics of Saigon Securities Incorporation (SSI) gathered from the bond issuance announcements in the first eight months of the year, commercial banks recorded the largest bond issuance on the market with a total issuance value of 56.060 trillion dong (accounting for 47.9%), followed by real estate businesses with 36.946 trillion dong (accounting for 31.5%), etc.
The banking group also recorded the highest successful issuance rate of up to 99.6 percent although the bond interest rates of banks are also the lowest.
