The Board of directors (BOD) of Asia Commercial Joint Stock Bank (ACB, stock code: ACB) has approved the second bond issuance plan in the fiscal year 2019. The par value of each bond is one billion dong. The maximum face value of the issuance is 5.5 trillion dong, equivalent to 5,500 bonds.
The bonds are non-convertible, no warrant included, and not ACB’s secondary debts. The bond term is two to three years. This volume of bonds will be issued in five periods in the form of bond issuing agent.
The yield applied to the bonds is fixed throughout the issuance time, depending on market conditions and investors’ demands. This level will be decided by ACB’s general director, not exceeding 6.75 percent per annum for three-year bonds and 6.7 percent per annum for two-year bonds.
ACB said that the capital raised from this issuance will be used to increase the bank’s operating capital to serve the medium and long-term demand.
Previously, in April ACB’s BOD also approved the plan of the first private placement in 2019 with a total face value of 2.5 trillion dong.
According to the audited financial statement, by March 31st, the bond value issued by the parent bank and its subsidiary was more than 7.961 trillion dong, down by nearly 330 billion dong compared to the end of 2018.
In 2019, ACB targets a pre-tax profit of 7.279 trillion dong, up by 14 percent. The total assets are expected to increase by 15 percent, in which credit growth is expected at 13 percent according to the limit allocated by the State Bank of Vietnam (SBV) on March 14th. The growth of customer deposits is expected to reach 15 percent and bad debt ratio is controlled below two percent.
By the end of the first quarter, ACB’s pre-tax profit reached 1.707 trillion dong, up by 14.5 percent over the same period of 2018, completing 23 percent of the annual plan. The bank’s total assets as of March 31st reached nearly 335.803 trillion dong, up by two percent compared to the end of last year. Meanwhile, lending to customers grew by three percent, reaching 237.358 trillion dong and customer deposits increased by 1.9 percent to 275.070 trillion dong. ACB’s bad debts fell to 1.623 trillion dong, equivalent to 0.68 percent.
