Commercial Joint Stock Bank for Industry and Trade of Vietnam (VietinBank) has just announced the results of the third phase bond private placement in 2020. Accordingly, on July 8th, the bank successfully issued 500 billion dong of 15-year bonds at a face value of one billion dong per bond. The bond has a fixed interest rate of 7.85 percent per annum. A business has purchased this entire batch of bonds of VietinBank.
Previously, on June 29th, VietinBank also successfully issued 500 billion dong of eight-year bonds. The interest rate applied for the entire eight years is floating, determined by the referent rate plus 1.1 percent per annum. The reference rate is the average of interest rates for personal 12-month savings interest rate at four banks including Commercial Joint Stock Bank for Investment and Development of Vietnam (BIDV), Commercial Joint Stock Bank for Industry and Trade of Vietnam (VietinBank), Commercial Joint Stock Bank for Foreign Trade of Vietnam (Vietcombank), and Commercial Joint Stock Bank for Agriculture and Rural Development of Vietnam (Agribank). The buyer is a domestic business.
On May 29th, VietinBank issued 50 billion dong of 15-year bonds with floating interest rates, determined by the reference rate plus 1.2 percent per annum.
According to information, in 2020, VietinBank plans to issue a maximum of 10 trillion dong of long-term bonds. The capital collected will be used to supplement the credit source for lending to power generation and distribution segment; industrial, manufacturing and processing segment; mining segment; and other segments.
