The Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinbankCTG) has announced the private issuance of VietinBank bonds in the second phase of 2019.
The issuance volume is 100 billion dong with ten-year term, par value of one billion dong. Release time is expected in July and August 2019.
This is a non-convertible bond and not guaranteed by the issuer’s assets. These bonds satisfy the conditions to be counted into VietinBank’s Tier II capital.
The interest rate of a bond is a floating rate applied to the entire bond term and is determined by the reference interest rate (the average interest rate of individual deposits in dong with 12-month term of Vietinbank, Vietcombank, BIDV and Agribank) + 1.2 percent per year.
VietinBank said that the capital from the bond issuance would be used to supplement operating capital for the bank to lend to the economy.
Previously, VietinBank’s Board of directors also adopted a resolution on approving the private placement of VietinBank bonds in the first phase of 2019 with the issuance volume of 50 billion dong, 15-year term, par value of one billion dong, fixed interest rate 8.2 percent per year. This is also an unsecured non-convertible bond. Release time is expected in July-August 2019.
Under the Decision of the State Bank of Vietnam (SBV), VietinBank is allowed to issue bonds totalling 10 trillion dong this year. The interest rate is decided by the bank, in accordance with the current legal regulations, ensuring business efficiency and operational safety. SBV also asks VietinBank to take responsibility for using 2019 bond issuance for the right purpose.
