It is noted that many banks have been issuing bonds to the public to raise capital with interest rates higher than normal savings interest rates.
Bao Viet Commercial Joint Stock Bank (BVBank) has just offered bonds to the public (phase 1) through direct issuance at BVBank's transaction points, with outstanding interest rates.
The total number of bonds offered is 56 million bonds, expected to be issued in 6 (six) batches. Of which, the first batch is 15 million bonds. Customers have a need to buy bonds with a face value of 100,000 VND/bond. The minimum number of registered purchases is 100 bonds for individual investors or 1,000 bonds for institutional investors. Thus, with only 10 million VND, individual customers can buy and hold BVBank bonds to enjoy high profits.
The first batch of bonds will be offered from now until 12:00 on September 10. The bonds being offered by BVBank have a term of 6 years. The highlight is that the first year's interest rate is fixed at 7.9%/year. Customers will receive interest periodically every year.
From the second year, the bond interest rate will be 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. Currently, the average interest rate of 4 state-owned commercial banks is about 4.7%/year. Calculating, the interest rate from the second year onwards is also about 7.2%/year or more.
These interest rates are considered attractive in the market at the present time, compared to normal savings interest rates and compared to some other banks that are issuing bonds to the public. For example, Agribank offers 10,000 billion VND in bonds to the public in 2024 with a reference interest rate plus 2%/year, a total of nearly 7%/year. HDBank issues a batch of bonds to the public with a term of 7 years, the interest rate is calculated by the reference interest rate plus a margin of 2.8%/year, a total of about 7.5%/year...
Mr. Ngo Minh Sang, Director of BVBank's Personal Clients, shared that BVBank bonds are a safe and effective investment channel because the bonds offered by Viet Capital Bank will be centrally registered at the Vietnam Securities Depository and Clearing Corporation and listed on the trading system of the Hanoi Stock Exchange after the end of the offering.
“The bonds will be officially traded after the regulatory agencies approve the above procedures. BVBank hopes to bring customers more opportunities for effective and transparent investment,” said Mr. Sang.
Talking to reporters, economic expert, Dr. Dinh The Hien, commented that bank bonds are a safe and effective investment channel compared to the current normal savings interest rate. Currently, the savings interest rate for a term of over 12 months of state-owned commercial banks is about 4.7%/year; of joint-stock commercial banks is about 5-5.5%/year.
Bank bonds and savings deposits are similar in that they are essentially loans to banks and the banks are obligated to pay interest on that money. Receiving money at maturity is similar to withdrawing money from a savings account after the deposit period expires.
As at BVBank, this bank said that in previous issuances, it had fully and timely repurchased the issued bonds. In this bond issuance, BVBank will exercise the repurchase right from the 24th month from the date of issuance.
“Investing in bank bonds requires idle capital during long-term regular savings deposits. Buying bank bonds is safe and has less risk compared to other investment channels. If capital is needed, customers can also pledge or mortgage bonds to borrow money to pay back at the issuing bank, so liquidity is still high,” said Dr. Dinh The Hien.
To register to buy bonds at BVBank, customers do the following:
Step 1: Customers sign the Bond Purchase Registration Form at BVBank transaction points.
Step 2: Customer pays for the bond purchase. Customer receives SMS notification of successful purchase transaction.
Step 3: Customers wait to receive SMS notification of receiving the Bond Ownership Certificate and receive it at the transaction points within 30 days from the date of issue.
Source: https://www.congluan.vn/mua-trai-phieu-ngan-hang-nao-co-loi-nhat-post308654.html
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