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Vietinbank to sell 30 million bond notes

Update: August, 28/2020 - 17:12

 

A Vietinbank office. The bank has put 30 million bond notes up for sale as it wants to raise VNĐ3 trillion to raise lending reserve. — Photo vietnambiz.vn

HÀ NỘI — The Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank) on Thursday offered 30 million bond notes for sale as the bank wants to raise VNĐ3 trillion (US$130.5 million).

The bond notes are non-convertible, not guaranteed by Vietinbank’s assets and the income raised from bond selling is counted as the bank’s tier-2 capital.

Half of the bond notes will mature in eight years and the annual yield rate is equal to the average 12-month lending rate by Vietcombank, BIDV, Agribank and Vietinbank plus 0.9 per cent.

The other half will mature in 10 years and the annual rate is equal to the average 12-month lending rate by Vietcombank, BIDV, Agribank and Vietinbank plus 1 per cent.

Interest will be paid once a year on the day of issuance. Investors may purchase the bonds until September 24.

On July 30, Vietinbank sold 70 million bond notes to raise VNĐ7 trillion. The bank was allowed to sell a total of 100 million bond notes in 2020 to raise the available cash for lending and meet the capital adequacy ratio required by the central bank.

As of June 30, total capital raised from individuals and organisations was up 1.8 per cent from the end of last year to VNĐ1.08 trillion. Of the figure, total savings by customers rose 2.3 per cent in six months to VNĐ913.3 trillion. The total savings by other financial institutions gained 3.87 per cent in six months to VNĐ113.7 trillion.

In the first six months, the bank announced pre-tax profit and post-tax profit increased by 39.8 per cent and 39.6 per cent to VNĐ7.46 trillion and VNĐ6 trillion, respectively.

Vietinbank shares, listed on the Hồ Chí Minh Stock Exchange as CTG, rose 1.4 per cent to end Friday at VNĐ25,100 ($1.09) apiece. — VNS

 

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