ABBank successfully issued 3,000 billion VND in bonds

Hanoi Stock Exchange (HNX) has just announced that An Binh Commercial Joint Stock Bank (ABBank, UPCoM: ABB) has completed the issuance of 2 bond lots with codes ABBL2325001 and ABBL2326002 with a face value of 1 billion VND/bond.

The bond lot coded ABBL2325001 is worth VND 2,000 billion with a term of 2 years, from August 25, 2023 to August 25, 2025, fixed interest rate of 6.4%/year. The bond lot coded ABBL2326002 is worth VND 1,000 billion with a term of 3 years, from August 28, 2023 to August 28, 2025, fixed interest rate of 6.6%/year.

Thus, the total value of these two bond lots is 3,000 billion VND.

Finance - Banking - ABBank successfully issued 3,000 billion VND in bonds

Regarding bond issuances, on August 21, ABBank's General Director decided to issue private bonds worth VND 6,000 billion to investors in 2023 with a face value of VND 100 million/bond. Bond terms range from 1-5 years, the specific term is decided by the General Director at each issuance.

Expected issuance of up to 10 tranches, expected issuance volume of each tranche is up to 2,000 billion VND. The number of issuances, volume and specific time are decided by the General Director. Expected issuance period is from August 1 to December 31, 2023.

These bonds are issued in book entry form. These bonds are non-convertible, do not come with warrants and are not secured by the assets of the issuing organization.

The proceeds from the bond issuances will be used by ABBank to lend to individual and corporate customers. The capital raised from the bond issuances will be used before March 31, 2023.

In case of disbursement according to schedule, the capital collected from the issuance of temporarily idle bonds will be used to deposit at the State Bank and other credit institutions.

Sources for payment of principal and interest on bonds come from ABBank's revenue sources and/or revenue from due loans and/or capital mobilization from organizations, individuals and other legal capital.

Regarding business situation, according to the audited semi-annual financial report for 2023, ABBank's pre-tax profit for the first 6 months of 2023 after auditing remained unchanged at VND 638 billion.

ABBank's total assets at the end of the second quarter of 2023 reached VND 154,346 billion, an increase of more than VND 2 billion compared to before the audit due to the addition of VND 2.3 billion in receivables entries.

ABBank's audited service income increased by more than VND 30 billion, reaching VND 745 billion due to the transfer according to the audit opinion from the income from other activities item .

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