Commercial Joint Stock Bank for Industry and Trade of Vietnam (VietinBank, stock code: CTG) has announced the results of the second public bond offering in 2019.
Accordingly, from October 7th to 29th, VietinBank successfully distributed one trillion dong of bonds, including 500 billion dong of seven-year bonds and 500 billion dong of 10-year bonds to a total of 1,885 individual investors and 151 institutional investors.
It is known that these bonds will mature in 2026 and 2029. The interest rate for bonds which mature in 2026 is equal to the reference interest rate plus one percent per annum and that of bonds which mature in 2029 is equal to the reference interest rate plus 1.2 percent. The reference interest rate is the average of the 12-month dong individual savings interest rates (interest rate paid at maturity) of four banks including Commercial Joint Stock Bank for Foreign Trade of Vietnam (Vietcombank), VietinBank, Commercial Joint Stock Bank for Investment and Development of Vietnam (BIDV) and Commercial Joint Stock Bank for Agriculture and Rural Development of Vietnam (Agribank).
Leader of VietinBank said that the money collected from the bond issuance will be used to supplement the working capital for the bank, perform economic lending, and ensure the safety operating ratios in accordance with regulations of the State Bank of Vietnam (SBV).
After the above issuance, VietinBank’s long-term debts were raised to 37.515 trillion dong. The total debts of the bank reached nearly 1,130 trillion dong. The bank’s current debts to equity ratio is currently 3.03 percent.
In 2019, the State Bank of Vietnam (SBV) allowed VietinBank to issue 10 trillion dong of bonds to the public. The interest rate is decided by the bank, in accordance with the current legal provisions, ensuring business efficiency and operational safety.
According to VietinBank’s financial statement in the first nine months of 2019, the bank recorded a high non-interest rate growth. Specifically, the net service income increased by 53 percent, and income from foreign currency trading grew by more than 120 percent over the same period of last year.
VietinBank’s net interest revenue in the first three quarters of 2019 rose up by 12 percent compared to the same period of last year. The capital costs are well managed through the consolidation of a stable, sustainable and low-cost capital source. In addition, VietinBank also effectively manages operating costs and keeps Cost Income Ratio (CIR) at low level.
VietinBank’s separate pre-tax profit in nine months reached nearly 8.3 trillion dong, up by 15 percent compared to the same period of 2019. Meanwhile, the consolidated pre-tax profit reached nearly 8.5 trillion dong, up by more than 11 percent over the same period of 2018.
On the stock market, closing the trading session on November 4th, CTG’s market price stood at 22,450 dong per share. The market capitalisation of the stock, accordingly, was about 83.590 trillion dong.
