Information of Commercial Joint Stock Bank for Industry and Trade of Vietnam (VietinBank, code: CTG) showed that on September 27th, the bank has successfully completed the issuance of four trillion dong of secondary bonds to the public.
This bond volume was part of the bank’s first public offering in 2019, and included in the plan to issue five trillion dong of bonds to the public approved by the State Securities Commission (SSC).
These bonds are non-convertible with no warrant, and not ensured by assets of the issuer. They are not subject to restriction on transferors.
According to VietinBank, the four trillion dong collected from this bond issuance will be used to increase the bank’s scale of working capital to provide credit to the economy, and to ensure the safety ratios prescribed by the State Bank of Vietnam (SBV).
VietinBank plans to carry out the second phase of bond public offering in early October 2019, after being approved by the SSC).
It is known that in 2019, the SBV allowed VietinBank to issue bonds to the public with a total par value of 10 trillion dong.
The bond yields are decided by VietinBank, but must comply with the provisions of law, ensuring business efficiency and safety of banking operations.
Under the approved plan, the buyers of bonds are Vietnamese organisations and individuals, and foreign organisations and individuals. Notably, the buyers of VietinBank’s bonds which are issued for the first time on the primary market do not include credit institutions, foreign bank branches, subsidiaries of VietinBank and subsidiaries of other credit institutions.
