Asia Commercial Joint Stock Bank (ACB) has just announced the issuance of up to five trillion dong of certificates of deposit in the first individual issuance in 2019.
Specifically, the bank will issue certificates of deposit of one billion dong, term of 12 months. The maximum number of issuances is 10.
Notably, certificates of deposit are subject to fixed interest rates for the entire term. Specific interest rates applied depends on market conditions, the needs of investors and the decision of the general director or authorised person at a maximum of six percent per year. The interest will be paid in lump sum with the principal on the due date.
The maximum interest rate of six percent per year of ACB is much lower than the interest rates of certificates of deposits of other banks, and also lower than the current 12-month deposit rates of banks.
ACB said the purpose of issuing certificates of deposit was to increase the size of the bank’s operating capital to meet the demand for credit.
In the first nine months of 2019, in spite of the deposit growth of 10.2%, ACB was also very active in raising capital through bond issuance. The bank was also one of the two banks with the most bonds issued since the beginning of the yearabout 10.45 trillion dong. The bonds had a term of two to three years, with interest rates from 6.7-6.8 percent per year.
