Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) has just announced that it has successfully issued a total of 2.311 trillion dong of medium and long-term bonds from May 22 to May 26, 2020.
In which, BIDV is allowed to repurchase 600 billion dong and 400 billion dong of six-year bonds after one year of issuance; 744 billion dong with seven-year term after two years. The 500 billion dong with 15-year term was also successfully issued by BIDV with, which allowed the bank to buy back after 10 years of issuance.
In addition, eight-year and ten-year notes were issued by BIDV, but in small quantities, 61 billion dong and 6 billion dong respectively. In which, the eight-year term can be repurchased after three years of issuance and the ten-year term can be redeemed after five years from the date of issuance.
BIDV said that all of the more than 2.3 trillion dong of bonds mentioned above are non-convertible bonds, not accompanied by warrants, letter of guarantee or collaterals, issued and paid in Vietnam Dong, identified as direct repayment obligation, which is BIDV’s secondary debt and satisfies the conditions for counting on Tier 2 capital of BIDV in accordance with current regulations.
Previously, in the first months of the year and 2019, BIDV also mobilised a total of tens of trillion dong through issuing bonds to increase tier 2 capital, among the banks with the most bond mobilisation in the market.
