SSI issues US$8.9 million of non-convertible bonds
The Sai Gon Securities Inc (SSI) on August 5 issued nearly US$8.9 million worth of two-year non-convertible bonds with an annual yield rate of 7% for the first 12 months.
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This was SSI’s first bond issuance of this year and the bond yield rate was also the lowest ever. In 2015, the brokerage firm issued VND800 billion worth of bonds.
SSI said that the fund mobilised from the bond issuance would be used to increase the firm’s working capital and strengthen the firm’s top position in all business sectors.
SSI said that the bonds were issued successfully as the bond market showed a high amount of available capital and the lending growth rate remained low.
During the first half of the year, the banking sector recorded a lending growth rate of 8.16%, lower than deposit growth rate in the sector of 8.23%.
The difference between lending and deposit growth rates has helped increase the liquidity among all banks and reduce the interbank overnight lending rate.
SSI also said that the scale of the bond issuance was small and short, thus the company was able to mobilise the capital with a low yield rate.
In addition, investors were professional and highly reputable finance institutes in Vietnam and they were able to evaluate precisely SSI’s financial status and credit rating.
SSI is now among three leading brokerage firms in Vietnam. At the end of June, the company’s chartered capital reached VND4.8 trillion.
SSI has recently reported a total pre-tax profit of VND508.86 billion, equal to 53.5% of the expected result for this year.
