Bidv starts preparation for issuance of international bonds

Bank for Investment and Development of Vietnam (Bidv) has recently announced to invite domestic and foreign organisations to participate in bidding for selection of consultants to arrange the bank’s international bond issuance.

The bidding will be held at 9:30 am on August 30, 2012.

In 2011, in its operation plan, Bidv expected to issue $500 million worth of international bonds. However, in year, Bidv failed to do so due to unfavourable local and global macroeconomic conditions.

Till June 30, 2012, while capital mobilisation in dong raised 8.62 percent from the end of 2011, the foreign currency capital mobilisation of credit institutions decreased 2.2%, the State Bank of Vietnam (SBV)’s report said.

Of which, at Bidv, the savings of customers in gold and foreign currency as of March 31, 2012 declined nearly 20 percent from the end of 2011.

Earlier, by the middle of May, Vietnam Commercial Joint Stock Bank of Industry and Trade (VietinBank-CTG) also successfully issued $250 million worth of international bonds for 5-year tenor at the coupon rate of 8 percent per annum (p.a.). This proceed is the first step in VietinBank’s plan to raise $500 million worth of international bonds.

Some other units namely Vietnam Commercial Joint Stock Bank for Foreign Trade (Vietcombank-VCB) and Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank-STB) are also planning to sell international bonds within this year to support the foreign currency source in the context of the central bank’s move to impose the US dollar deposit interest rate cap in the country at 2 percent per year, lower than the dong deposit rate cap by seven percentage points.

In the evaluation report in the first six months of this year, S&P credit rating agency raised Bidv’s rating outlook from negative to stable. This local bank’s bonds are maintained rating at B +.

 

Category: Finance