LPBank spends 2,000 billion VND to buy back bonds before maturity

Lien Viet Post Joint Stock Commercial Bank (LPBank – HoSE: LPB) has just released a document announcing information on the results of early bond buyback.

Specifically, LPBank has bought back all 2 lots of bonds with codes LPBH2124014 and LPH2124015. Of which, 1,000 bonds with code LPBH2124014 have a face value of 1 billion VND/bond, corresponding to a total value of 1,000 billion VND.

The bond code was issued on December 13, 2021, with a term of 3 years and will not mature until mid-December 2024. This is a non-convertible, unsecured bond, without warrants and is not a subordinated debt of the issuer.

The actual issuance interest rate is 3.3%/year. The purpose of issuance is to increase LPBank's operating capital scale, supplement medium and long-term mobilized capital to meet customers' medium and long-term loan needs.

Similarly, the bond lot code LPH2124015 also has a face value of 1 billion VND/bond, with a total issuance value of 1,000 billion VND. This is a bond lot issued in the domestic market. Interest rate is 3.3%/year.

The issuance date is December 15, 2021, with a term of 3 years, meaning it will not mature until December 15, 2024. LPBank did not clearly inform about the issuance destination of this bond lot.

Finance - Banking - LPBank spends 2,000 billion VND to buy back bonds before maturity — Information on 2 bond codes bought back by LPBank before maturity.

On the same day, LPBank received a notice from the Hanoi Stock Exchange about the cancellation of the listing of LPB121035 bonds. The reason for the cancellation was that the listed bonds were completely repurchased by the issuing organization before maturity.

Previously, LPBank also announced information about the plan to buy back bonds before maturity. Specifically, on January 2, 2024, the bank plans to spend more than VND 1,385 billion to buy back all of the nearly 13.9 million bonds with code LPB121035 in circulation. This bond lot was issued on December 30, 2021 with a term of 7 years.

The source of funds for the buyback comes from the principal/interest income of loans financed by capital from bond issuance and revenue from other business activities, from self-accumulated capital and other legal capital sources of LPBank. Last July, LPBank also spent more than VND 4,100 billion to buy back 4 lots of bonds before maturity .

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