Recently, Vietnam Joint Stock Commercial Bank for Industry and Trade (VietimBank – HoSE: CTG) announced the second public bond issuance.
Accordingly, VietinBank plans to issue two lots of bonds coded CTG2230T2/02 with a term of 8 years and CTG2232T2/02 with a term of 10 years. The issuance volume is 15 million bonds and 25 million bonds, respectively, with a face value of VND100,000/bond. Thus, the total value of bonds offered at par value in the second batch is VND4,000 billion with 40 million bonds.
The interest rate applied to these two bond lots is the floating interest rate, calculated by the reference interest rate (the average interest rate of personal savings deposits in VND, 12-month term, interest paid at the end of the listed term of 4 State-owned commercial banks: BIDV, VietinBank, Agribank and Vietcombank on the interest rate determination date) plus the margin.
These are non-convertible bonds, without warrants, without collateral and satisfy the conditions to be included in VietinBank's Tier 2 capital according to current law.
Vietinbank will use VND4,000 billion from the bond issuance to increase its operating capital, increase Tier 2 capital and ensure operational safety ratios according to the State Bank's regulations. At the same time, it will provide loans to the economy, including loans disbursed before and after the bond issuance for a number of industries and sectors.
Regarding the distribution method, the bank plans to distribute and sell bonds directly to investors through VietinBank's system of branches and transaction offices nationwide.
The minimum number of bonds that an investor can register to buy is 100 bonds, equivalent to VND 10 million at the face value of the bond. To avoid misunderstandings, investors can only register to buy a minimum number of bonds or multiples of 100 bonds. The registration period is from October 6, 2023 to November 1, 2023.
Vietnam Joint Stock Commercial Bank for Industry and Trade.
In July 2023, VietinBank successfully issued 50 million bonds, equivalent to 100% of the offering volume. With a face value of VND 100,000/bond, the total amount VietinBank collected from the offering was VND 5,000 billion, including VND 2,000 billion of 8-year bonds and VND 3,000 billion of 10-year bonds.
With this result, VietinBank is the credit institution with the largest volume of successful public bond issuance since the beginning of 2023 and is the only credit institution to complete 100% of the offering volume in the first offering.
The bonds issued to the public this time will also be listed by VietinBank in August 2023 according to regulations to create better liquidity for investors, contributing to the development of a vibrant stock market with many good stocks, in compliance with the Government's orientation to develop a healthy and transparent bond market.
Previously, VietinBank was granted by the State Securities Commission Certificate of Registration for Public Bond Offering No. 91 with a total planned issuance volume of VND9,000 billion, divided into two phases with two terms of 8 years and 10 years.
In early June 2023, Vietinbank's Board of Directors approved the overall plan to issue up to 30 batches of Tier 2 capital-raising bonds (secondary bonds) in a private manner in 2023.
This bank plans to issue individual Tier 2 capital-raising bonds with a face value of VND100 million or multiples of VND100 million/bond. The total volume of bonds issued is VND16,000 billion with a term of 6 years or more. The maximum number of offerings is 30. The expected time for each offering is from the second to fourth quarter of 2023 .
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