Bond interest rates of many banks exceed 7%

Typically, Loc Phat Vietnam Joint Stock Commercial Bank (formerly Lien Viet Post Joint Stock Commercial Bank - LPBank) has just successfully issued a bond lot worth 400 billion VND, the bond has a term of 7 years, maturing on August 23, 2031 with an interest rate of 7.58%/year.

Similarly, Bao Viet Commercial Joint Stock Bank (BAOVIET Bank) successfully issued a bond lot worth VND800 billion, with a term of 7 years, maturing on August 23, 2031, with an interest rate of 7.68%/year. Previously, BAOVIET Bank also successfully mobilized VND1,000 billion in bonds with an interest rate of 7.68%/year.

The Vietnam Joint Stock Commercial Bank for Industry and Trade (BVBank) is currently offering bonds to the public (phase 1) with a fixed interest rate of 7.9%/year for the first year. From the second year, the reference interest rate (based on the average 12-month personal savings interest rate, at the end of the term of 4 banks Vietcombank, VietinBank, BIDV, Agribank immediately before the annual interest rate adjustment period) + 2.5%/year.

Ho Chi Minh City Development Joint Stock Commercial Bank (HDBANK) has just announced the successful mobilization of 200 billion VND in bonds, with an interest rate of 7.47%/year. The bonds have a term of 7 years, maturing on August 21, 2031. This year, HDBANK has issued dozens of bonds to the public, most of which have an interest rate of 7.47%/year and 7.8%/year, with a term of 7-8 years.

Since the beginning of the year, Nam A Commercial Joint Stock Bank (Nam A Bank) has issued 4 public bonds with a total mobilized value of 4,800 billion VND. Of which, 2 bond lots have an interest rate of 7.7%/year.

In addition, a series of banks issued bonds with interest rates above 6%/year such as: Vietnam Bank for Agriculture and Rural Development (Agribank); Asia Commercial Joint Stock Bank (ACB); Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank); Saigon - Hanoi Commercial Joint Stock Bank (SHB); Vietnam Joint Stock Commercial Bank for Investment and Development (BIDV); Tien Phong Commercial Joint Stock Bank (TPBank);...

It can be seen that compared to the current 12-month term deposit of 5-6%/year, bank bonds are a more attractive investment channel in terms of interest rates. Therefore, bank bonds also attract many investors to transfer idle money from savings to buy bonds to enjoy higher interest rates. However, this investment channel is only suitable for those with long-term idle cash flow.

Source: https://laodong.vn/kinh-doanh/lai-suat-trai-phieu-nhieu-ngan-hang-vuot-muc-7-1389265.ldo