HSBC Bank (Vietnam) Limited has become the first foreign bank to issue bonds worth 600 billion dong in Vietnam’s market on August 10th 2020.
With par value of 100,000 dong per bond, the bond named Hoa Sen according to Vietnam’s national flower has a fixed interest rate of 5.8 percent per annum on par and a term of three years. The registered value exceeded the offer value, show the strong brand name of HSBC in Vietnam.
Tim Evans, general director of HSBC Vietnam said that “On the 150th anniversary of the establishment of HSBC in Vietnam, this bond issuance affirms the bank’s long-term commitment to the country. We expect to play a pioneering role in the continuous development of Vietnam’s businesses and capital market. We plan to regularly issue bonds in the market, continuing the goal to be the leading international bank in Vietnam.”
According to Tim Evans, the proceeds in this issuance will be used by HSBC Vietnam to increase the bank’s working capital, diversify the dong capital sources in order to serve the sustainable business growth of the bank in the near future.
HSBC has a long history of supporting Vietnam’s capital market through its active participation in the market. By October 2009, the bank mobilised 8.412 trillion dong on the bond market in dong, including the bonds for the Vietnam Electricity Corporation (EVN), Vietnam Technological and Commercial Joint Stock Bank (Techcombank), and Commercial Joint Stock Bank for Investment and Development of Vietnam (BIDV). In May 2013, HSBC was the co-book-building bank and main manager for the international bond issuance transaction of Commercial Joint Stock Bank for Industry and Trade of Vietnam (VietinBank) worth 250 million US dollars.
In 2014, HSBC was the book-keeping bank and in charge of offering Vietnamese government bonds in the successful issuance of 10-year international bonds in US dollar with a total value of one billion US dollars.
