Vietcombank to sell non-convertible bonds worth nearly US$90 million
Bank for Foreign Trade of Vietnam (Vietcombank) on October 24 secured approval to sell non-convertible bonds worth VND2 trillion (US$89.3 million) at par value.
According to a statement released by the State Securities Commission, Vietcombank will sell 20 million bonds to the public within 90 days from October 24 at par value of VND100,000 per unit.
The largest lender of Vietnam by market value currently has charter capital of VND26.65 trillion.
Previously, in early August, the State Bank of Vietnam (SBV) approved Vietcombank’s plan to issue bonds worth VND8 trillion in 2016.
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The coupon rate would be based on Vietcombank’s decision, the central bank said. It said the coupon rate must be in line with market interest rates and existing regulations of SBV, while ensuring business efficiency and safety for Vietcombank.
Vietcombank can sell its bonds to both Vietnamese and foreign individual and institutional investors.
The buyers of the bonds initially issued by Vietcombank in the primary market will not include credit institutions, foreign banks’ branches and subsidiaries of credit institutions.
The central bank asked Vietcombank to use the funds raised from the issue of bonds for appropriate purposes and with efficiency.
The bank should focus on sectors of priority, restrict lending to potentially risky sectors, such as real estate, and avoid credit risk concentration on large customers.
