VietinBank continuously issued bonds to increase tier 2 capital
admin 16-07-2020, 00:11
VietinBank continuously issued bonds to increase tier 2 capital

VietinBank expects to issue the fourth and fifth bonds with a total value of VND 100 billion in July. Previously, the bank has successfully issued VND 1,050 billion bonds since the beginning of the year.

The Board of Directors (BOD) of Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank – Code: CTG) has just approved a plan to issue individual bonds of the fourth and fifth installments, each worth 50 billion dong. Expected time of release in July.

Bonds issued in these two periods have a term of 15 years, face value of VND 1 billion / bond. Fixed interest rate 7.85% / year for the entire 15-year term, annual interest payment.

These are all non-convertible bonds, no collateral, and meet the conditions to be included in the tier 2 capital of the bank.

Bonds are restricted from trading to less than 100 investors, excluding professional securities investors within 1 year from the date of completion of the issuance, except for cases prescribed by law.

Previously, the Board of Directors of VietinBank approved the plan to issue bonds to the public in 2020 with a total volume of VND 11,000 billion. These include 8-year, 10-year, and 15-year bonds, all of which meet the conditions to be included in a bank’s tier 2 capital.

A few days ago, VietinBank announced the successful issuance of VND 500 billion of 15-year bonds and VND 500 billion of 8-year bonds for domestic businesses. Accumulated from the beginning of the year, the bank has successfully issued VND 1,050 billion of bonds.

Financial statements for the first quarter showed that as of March 31, VietinBank had nearly VND 37,600 billion of circulating bonds (mainly bonds with maturities of more than 5 years).

According to the data shared by Mr. Tran Minh Binh, General Director of VietinBank, as of the end of June 2020, the credit balance including VietinBank’s foreign branches reached 946.1 trillion dong, up 4.5 thousand billion dong compared to the beginning of the year (corresponding to an increase of 0.48%) and especially significantly improved in June.

As of June 30, capital mobilization of market 1 of VietinBank increased by more than VND 21 trillion compared to 2019; capital structure had a positive shift in the second quarter.

Source: vietnambiz.vn

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