Bac A Bank offers more than 3,000 billion VND in bonds to the public

Bac A Commercial Joint Stock Bank (Bac A Bank – HNX: BAB) has just officially announced the third public offering of bonds in 2022. The offering period is from September 25 to October 16, 2023, with a total value of more than VND 3,000 billion.

Specifically, this bank continues to offer 33.44 million bonds, including the remaining unissued bonds of the second round of 25.44 million bonds.

According to the plan, Bac A Bank will issue 4 bonds, with a total offering value at par value of up to 4,000 billion VND.

Bac A Bank's 2022 public bond issuance phase 3 is a non-convertible bond, without warrants, without collateral. The product is widely offered to all subjects (including individual/organizational customers in Vietnam and abroad).

The face value of each bond is VND 100,000, with a term of 7 years for the two symbols BAB202203-07L, BAB202203-07C, and 8 years for the symbol BAB202203-08C. The expected time to buy back the bonds is 18, 24 and 36 months from the date of issuance, corresponding to each bond symbol.

Previously, in early 2023, Bac A Bank issued more than 25.6 million bonds in the second phase, with a par value of VND 100,000/bond, total value of VND 2,564.6 billion, with interest paid periodically every 12 months.

Including 6.9 million 7-year BAB202202-07L bonds, 13.7 million 7-year BAB202202-07C bonds and 5 million 8-year BAB202202-08C bonds. The interest rates applied to the bond codes are calculated according to the reference interest rate formula plus 1.1%; 1.3% and 1.5%/year, respectively.

However, this bank only distributed 205,500 bonds, equivalent to 0.8% of the total number of bonds offered. The total amount of money raised from the offering was VND20.55 billion. After deducting the issuance consultancy service fee, the total net revenue from Bac A Bank's bond offering in the second round was VND20.47 billion.

In the first bond sale, Bac A Bank also issued 16 million bonds with a face value of VND1,600 billion but could not sell all of them. Accordingly, Bac A Bank only distributed about 2.35 million bonds, equivalent to 14.7% of the total bonds offered.

The proceeds from the above bond issuance will be used by Bac A Bank to supplement medium- and long-term lending capital for individual and institutional customers.

Regarding business performance, in the first 6 months of 2023, Bac A Bank's total operating income reached VND 1,219 billion, up 18% over the same period in 2022. Net profit from business activities increased by only 2.7%, reaching VND 498 billion. Profit after tax reached VND 380 billion, up 20% over the first 6 months of 2022.

As of June 30, 2023, Bac A Bank's total assets reached VND 135,266 billion, up 5% compared to the beginning of the year. Outstanding loans to customers increased by 2.6% to VND 96,595 billion. Customer deposits increased by 8.7% to VND 105,366 billion.

On the market, at the end of the session on September 25, BAB shares decreased by 0.72% to VND 13,700/share with a trading volume of 3,905 units .

Thu Huong

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