The Board of directors (BOD) of Vietnam Prosperity Commercial Joint Stock Bank (VPBank VPB) has made an announcement on collecting shareholders’ opinions in writing on the issuance and listing of international bonds.
Two plans have been given.
Under the first plan, VPBank expects to offer bonds overseas in several stages (according to the euro Medium Term Note Programme). The par value of the bond is a multiple of 1,000 US dollars or other par value in accordance with the international bond market practices.
Total maximum issuance value under the first option is up to one billion US dollars. The bond terms are from three to five years. The total release time is expected in 2019 and 2020. The bond interest rates may be fixed, floated, combining both, or differently structured. The bonds are issued internationally to investors outside the US and will be listed on the Singapore Stock Exchange.
Under the second plan, VPBank also asked shareholders’ opinions about issuing Green Bonds in the form of private placement to some investors with a total value of 120 million US dollars.
The Green Bond has a term of three years, at negotiated interest rates. The issuance time is expected in 2019 and 2020. The purpose of the issuance is to finance green portfolio/ loans meeting green criteria.
In recent time, many other banks also want to issue bonds to raise capital, such as Tien Phong Commercial Joint Stock Bank (TPBank) expecting to issue 200 million US dollars of international bonds, Asia Commercial Joint Stock Bank (ACB) expecting to issue 25 trillion dong of three-year bonds, Commercial Joint Stock Bank for Industry and Trade of Vietnam (VietinBank) expecting to issue 10 trillion dong of bonds in 2019, etc. With an issuance value of 1.12 billion US dollars, the amount of bonds that VPBank wants to issue is the largest.
