VietinBank offers 40 million bonds to raise VND4,000 billion to increase Tier 2 capital

Accordingly, this bank will issue two bond codes with the quantity of 30 million bonds and 10 million bonds, respectively, with the value of 3,000 billion VND and 1,000 billion VND. Specifically, bond code CTG2432T2/01 has a term of 8 years, with an interest rate plus a margin of 1.05 percentage points/year compared to the average interest rate of the 12-month term of the Big4 group (including Agribank, BIDV, Vietcombank and VietinBank).

Bond code CTG2434T2/01 has a term of 10 years, with an interest rate plus a margin of 1.15 percentage points/year compared to the average 12-month term interest rate of the Big4 group (including Agribank, BIDV, Vietcombank and VietinBank).

The face value of each bond is VND100,000/bond. This is a non-convertible bond, without warrants, without collateral and meets the conditions to be included in the bank's Tier 2 capital according to current law. According to Vietinbank, the purpose of offering bonds to the public is to increase the scale of operating capital, increase Tier 2 capital and ensure the operational safety ratios according to the regulations of the State Bank, at the same time aiming to make loans to the economy.

VietinBank offers 40 million bonds to increase Tier 2 capital

VietinBank sets a target of 5-10% growth in total assets in 2025. Outstanding credit growth is approved by the State Bank of Vietnam. Mobilized capital is consistent with credit growth. NPL ratio is controlled below 1.8%. Individual pre-tax profits will also be approved by competent State agencies. In 2024, Vietinbank will achieve VND31,800 billion in pre-tax profits, up 27.1% compared to 2023.

SSI Securities has estimated the bank's 2025 business results, forecasting that the company's pre-tax profit could reach VND40,011 billion, up 26% year-on-year. According to the analysis unit, VietinBank's profit growth momentum is thanks to credit provisions decreasing by 12.7% year-on-year to VND24,000 billion and net interest income improving by 15% year-on-year.

At the same time, SSI experts expect credit growth to reach 17.5% in 2025, to VND2.03 trillion. Credit is expected to focus more on large projects in high-growth sub-sectors and groups of businesses that tend to shift their supply chains and expand production to Vietnam.

The retail segment is expected to recover, including household business loans, home loans and consumer loans, while large corporate and small and medium-sized enterprise customers will remain at a good level. At the same time, SSI's analysis team expects VietinBank to maintain reasonable lending interest rates to support the economy, although deposit interest rates are expected to increase slightly in the second half of 2025.

VietinBank has just announced the documents for the 2025 Annual General Meeting of Shareholders scheduled for April 1 in Hanoi. At this meeting, VietinBank will present to shareholders a plan to increase charter capital from remaining after-tax profits, allocate funds and distribute cash dividends for the period 2009 - 2016 to increase charter capital from VND53,700 billion to VND77,671 billion. Accordingly, VietinBank plans to issue a maximum of nearly 2.4 billion shares, with an issuance ratio of 44.64% (the specific ratio will be implemented according to the approval of the competent State agency) to existing shareholders.

VietinBank proposed a huge dividend payment of approximately 45%. The General Meeting of Shareholders will authorize the Board of Directors to decide on the specific issuance time after receiving approval from the competent authority. VietinBank's Board of Directors also said that all the additional capital will be used to serve business, invest in facilities, technology infrastructure, develop services and expand credit activities, investment and other business activities.

Previously, this bank also planned to increase its charter capital by VND23,971 billion from the remaining profits from 2021, 2022 and the remaining profits from 2009-2016. If all of the above plans are approved and implemented, VietinBank's charter capital will increase from VND53,700 billion to VND90,236 billion. Also at this congress, VietinBank's board of directors continued to present to shareholders a plan to use all profits after setting aside funds in 2024 to pay dividends.

In 2024, VietinBank's pre-tax profit will reach more than VND 31.7 trillion, up 27.1% over the previous year. VietinBank's separate after-tax profit will reach VND 24,259 billion, after setting aside funds, the remaining profit is nearly VND 15,597 billion. The level of stock dividends will need approval from competent State agencies, expected to be VND 15,597 billion. At the same time, VietinBank has also proposed competent authorities to approve the policy allowing the bank to retain all annual profits from the 2024 - 2028 period to increase capital, improve financial capacity, and expand credit growth space.