SeABank Postpones International Bond Issuance Plan To 2020

Southeast Asia Commercial Joint Stock Bank (SeABank) has announced the Resolution of the Board of directors (BOD) on the issuance of 400 million US dollars of international bonds.

Accordingly, the issuance time is postponed to 2020 or according to the specific time decided by the bank’s BOD. At the same time, the BOD will also adjust the purpose of capital use in 2020 and subsequent years.

Previously, SeABank set a plan to issue a maximum of 400 million US dollars of five-year international bonds in 2019. These bonds are non-convertible with no warrants and not secured by assets.

Regarding the reason of the international bond issuance, SeABank said that the bank is not yet able to meet all the demand for foreign currency loans of customers due to the regulations of the State Bank of Vietnam (SBV) on mobilising foreign currency.

The bank’s foreign currency source mobilised from domestic customers is mainly short term and unstable because the SBV restricts US holding by setting the US deposit interest rate cap at zero percent.

Accordingly, the issuance of international bonds in foreign currency will help SeABank improve the term structure, minimise term risks, interest rates and improve the efficiency of capital use.

 

Category: Finance, Vietnam

Print This Post

RECENT NEWS

Reference Exchange Rate Down 5 VND On August 27

Intellasia East Asia News The State Bank of Vietnam set the daily reference exchange rate at 23,208 VND per USD on Aug... Read more

VietCapital Bank Submits To Issue 38m Shares

Intellasia East Asia News Viet Capital Commercial Joint Stock Bank (Viet Capital Bank) (UPCoM: BVB) had just released ... Read more

Payment Via Mobile Banking Increases By Nearly 180pct In H1

Intellasia East Asia News Sharing at the workshop on “Promoting non-cash payments in businesses” held by Dien dan ... Read more

Banks Heat Up Digital Transformation Race

Intellasia East Asia News The 4.0 Industrial Revolution is making a comprehensive change to the way of providing produ... Read more

Outlining Deep Scrutiny Of HSBC Vietnam Bond Activity

Intellasia East Asia News Vietnam’s corporate bond market presents a good channel for capital mobilisation, even if ... Read more

VIB Prepares For The Unusual General Meeting Of Shareholders

Intellasia East Asia News The Board of directors of International Commercial Bank (VIB) has just announced a resolutio... Read more