Commercial Joint Stock Bank for Investment and Development of Vietnam (BIDV) successfully issued 500 billion dong of seven-year bonds to the public via bond issuing agent.
These bonds are non-convertible, not accompanied by warrants, not guaranteed or secured, issued and paid in dong. They are BIDV’s secondary debts and satisfy all conditions to be included in BIDV’s Tier-2 capital, according to current regulations.
The bonds were issued on November 21st 2019 with a value of 500 billion dong for a seven-year term. BIDV has the right to repurchase the bonds after two years.
After deducting expenses such as issuance advisory fee (1.1 billion dong), issuing agent fee (2.75 billion dong), fee of bondholder representative costs (550 million dong), etc. the total value BIDV collected from this issuance is more than 495.5 billion dong.
The bond interest rate is calculated as the sum of reference rate (average of individual savings interest rates in dong, interests paid at maturity, applicable to 12-month term of four banks including Commercial Joint Stock Bank for Agriculture and Rural Development of Vietnam (Agribank), Commercial Joint Stock Bank for Industry and Trade of Vietnam (VietinBank), BIDV’s Hanoi area and Commercial Joint Stock Bank for Foreign Trade of Vietnam (Vietcombank) plus 1.3 percent per annum.
Thus, after closing the historic deal with KEB Hana and collected more than 20 trillion dong, BIDV has continuously issued bonds to supplement Tier-2 capital and have more medium and long-term capital for doing business.
Previously, on November 14th, BIDV also successfully issued 270 billion dong of six-year bonds. From early November until now, BIDV has successfully issued more than 3.8 trillion dong of bonds with terms of six and seven years.
After this offering, the total bond debt value of BIDV is more than 27.727 trillion dong.
