BIDV to issue more than VND 2,500 billion in bonds in August 2024

Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV - HoSE: BID) has just announced information on the results of the private offering of BIDV bonds.

Accordingly, the bank has just successfully issued 2 bond lots with codes BIDLH2431028 and BIDLH2432029. Of which, bond lot BIDLH2431028 has a total issuance value of 900 billion VND, issued in the domestic market.

The bond lot was mobilized on August 21, 2024, with a term of 7 years and is expected to mature in 2031. The issuance interest rate is 5.78%/year.

On the same day, the bank also mobilized the BIDLH2432029 bond lot with a value of VND95 billion, 8-year term, expected to mature in 2032.

According to data from the Hanoi Stock Exchange, in the first 8 months of 2024, BIDV mobilized a total of 28 bond lots. In August, the bank mobilized 4 bond lots with a total value of VND2,535 billion.

Information on bonds issued by BIDV in August 2024.

The bond lot with the largest value is BIDLH2430025 with a total face value of VND 1,000 billion, issued on August 8, with a term of 6 years, expected to mature in 2030. The issuance interest rate is 5.58%/year.

On the other hand, this month, the bank also spent 600 billion VND to buy back 2 batches of bonds before maturity.

Most recently, on August 12, BIDV bought back before maturity the bond code BIDL2129026 with a face value of VND500 billion. The bond has an 8-year term, was issued on August 12, 2021 and is expected to mature in 2029.

In May, BIDV's Board of Directors approved the plan to issue private bonds in the second phase in 2024. Accordingly, BIDV plans to issue up to VND6,000 billion in bonds to increase Tier 2 capital.

Tier 2 capital will be used by BIDV to lend to the economy, invest and/or carry out other permitted activities as prescribed by law. The offering subjects are professional securities investors as prescribed by the Securities Law.

Bonds are issued in the form of book entries with a face value of VND 100 million or multiples of VND 100 million. The issue price is equal to 100% of the face value with a term of over 5 years.

BIDV will decide the specific interest rate for each issuance based on the market situation, the bank's acceptance/capital demand at the time of issuance and in accordance with the State Bank's interest rate regulations in each period.

The bank plans to issue a maximum of 30 tranches between June and August 2024 and September and November 2024. During the above two periods, BIDV plans to offer a maximum of 15 tranches with a minimum offering volume of VND50 billion per tranche. The time for distributing bonds for each tranche is a maximum of 30 days from the date of information announcement before the offering.

Source: https://www.nguoiduatin.vn/bidv-phat-hanh-hon-2500-ty-dong-trai-phieu-trong-thang-8-2024-204240829163410921.htm