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.