Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) successfully issued 490 billion dong of medium and long-term bonds on July 30. Bonds are non-convertible and unsecured, issued and paid in dong and established direct debt repayment obligations. Furthermore, they are subordinated debts and satisfy the conditions to be included in the tier two capital of BIDV under the current regulations.
The bank also bought back all of 3.5 trillion dong of bonds to increase capital for the first phase in 2015. The bonds were offered on July 28, 2015 with a term of ten years plus one day and BIDV had the right to repurchase after five years. The bonds are eligible for tier two capital.
By the end of June, the bank’s total assets reached 1.45 quadrillion dong, down by three percent. Loans to customers were at 1.14 quadrilion dong, up by two percent from the beginning of the year. Bad debts are 22.767 trillion dong, 15 percent higher than the beginning of the year, in which doubful debts increase by nearly two trillion dong. Bad debt ratio rose from 1.74 percent to nearly two percent.
Customer deposits are 1.13 quadrillion dong, up by one percent compared with the beginning of the year. The issuance of valuable papers increased by 36 percent to 85.495 trillion dong, of which 48.832 trillion dong is in convertibale bonds and more than 32.142 trillion dong in certificates of deposit.
