Bond market to be vibrant by the end of 2024

MB Securities Joint Stock Company (MBS Research) forecasts that corporate bond issuance activities will be more active in the fourth quarter of 2024 when businesses' capital needs recover, the real estate market begins to flourish, and the need to expand production and business is actively following the economic recovery.

For individual investors, the signs of market recovery are a signal of many opportunities to expand investment channels, in which bonds are a safe and long-term choice. But what is a safe bond?

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“In fact, there is no such thing as a completely safe bond, but only a low-risk bond. A low-risk bond is a bond of a business with a good credit rating. This credit rating not only reflects the stable financial situation of the business but also demonstrates good resilience to risks from the macro environment, industry risks and internal factors of the business. Businesses with good credit ratings often have a solid financial structure, effective risk management strategies and the ability to respond flexibly to market fluctuations. This helps to minimize the possibility of default, creating peace of mind for investors when holding their bonds,” Ms. Nguyen Thu Binh - Acting Director of Risk Management and Head of Risk Management Department, PVI Fund Management Joint Stock Company shared in the article “Corporate bond risk management”.

Bac A Bank continues to offer 15 million bonds to the public

In early April 2024, FiinRatings - a member of FiinGroup and a partner of S&P Global Ratings in Vietnam - rated Bac A Bank's Long-Term Issuer Credit Rating at "A-" with a "Stable" Rating Outlook. Bac A Bank's risk position is assessed at "very good", demonstrated by clearly defined and consistent risk management, combined with a consistent risk appetite aimed at both individual and corporate customers with low risk levels. Bac A Bank's experience and history of asset quality management are also always good and more cautious than the industry average, along with a potential risk level assessed lower than the industry thanks to its relatively simple business model and focus on lending.

In fact, through previous issuances, Bac A Bank bonds have always been trusted and chosen by investors thanks to their high liquidity and ease of trading. The bank also fully performed its obligations to pay periodic bond interest and buy back bonds before maturity as committed.

From October 7, 2024, Bac A Commercial Joint Stock Bank officially offered 15 million bonds issued to the public for the second time - phase 2, with a total offering value of VND 1,500 billion, with an interest rate higher than the normal personal deposit interest rate for a 12-month term, with a maximum margin of up to 1.9%/year. Individual investors as well as organizations can easily own an investment of only VND 50,000,000 and VND 100,000,000, respectively.

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In this issuance, Bac A Bank bonds have a face value of VND 100,000/bond; interest is paid periodically every 12 months; including two terms of 07 years and 08 years. The expected time to buy back the bonds is only after 18 months, 24 months and 36 months from the date of issuance, corresponding to each bond symbol.

Similar to previous issuances, this round of bonds of Bac A Bank continues to be non-convertible, unsecured, and unsecured. The product is distributed directly at the head office and the system of branches/transaction offices of Bac A Bank nationwide, making it easy to participate. Investors can proactively trade and mortgage bonds at super competitive interest rates, creating conditions for customers to be proactive in their finances if they suddenly need capital and fully exercise the rights of bond owners including transfer, donation, mortgage, etc.

With capital added to Tier 2 capital through previous bond issuances, Bac A Bank continues to affirm its stable financial health, timely supply of capital to the economy, ensuring safety ratios in operations and growth targets approved by the State Bank of Vietnam.

Details at:

Website: www.baca-bank.vn

Customer service hotline: 1800 588 828 (free)

Get direct consultation at the nearest Bac A Bank branches/transaction offices.

Bui Huy