VietinBank sold over VND6.5 trillion of 8-year and 10-year bonds

30-Nov-2021 Intellasia | Nhip song Kinh te | 5:02 AM Print This Post

Commercial Joint Stock Bank for Industry and Trade of Vietnam (VietinBank, HoSE: CTG) has announced the results of the public offering of bonds in 2021. Specifically, the bank distributed over 65.1 million bonds, equivalent to a total value of nearly 6.513 trillion dong, accounting for 65.13 percent of the total 10 trillion dong of bonds offered for sale. The number of undistributed bonds is nearly 35 million units, equivalent to nearly 3.5 trillion dong.

In particular, the bank successfully distributed 3.021 trillion dong of eight-year bonds (interest rate is equal to the referent interest rates plus 0.9 percent per annum) and 3.492 trillion dong of 10-year bonds (interest rate is equalt to the reference interest rate plus one percent per annum). The reference interest rate is determined as the average of the one-year interest rate of VietinBank, Commercial Joint Stock Bank for Investment and Development of Vietnam (BIDV), Commercial Joint Stock Bank for Agriculture and Rural Development (Agribank) and Commercial Joint Stock Bank for Foreign Trade of Vietnam (Vietcombank). Interests are paid once a year.

The above bonds were distributed and sold directly by VietinBank to investors through the bank’s system of branches and transaction offices nationwide.

They are non-convertible bonds without warrants, secured assets which meet the conditions to be included in Tier-2 capital. The aim of this bond issuance is to increase the size of working capital, offer loans to the economy, increase Tier-2 capital, and ensure the operating ratios of the bank.

Regarding investor structure, for eight-year bonds, there were 3,964 individual investors who purchased 1.819 trillion dong of bonds and 107 institutional bonds who purchased nearly 1.2020 trillion dong. For 10-year bonds, 4,521 individual investors purchased over 2.213 trillion dong of bonds and 253 institutional investors purchased nearly 1.279 trillion dong.

The total costs of the offering were 375 million dong, including 350 million dong for consulting service and 25 million dong of licensing fee. After deducting costs, VietinBank net earned 6.512 trillion dong.

After the offering, the total debts of VietinBank slightly increased to nearly 1,360 trillion dong, including nearly 844 trillion dong of short-term loans, approximately 516 trillion dong of long-term loans, and over 40.856 trillion dong of unmatured bonds.

In addition to raising capital through bonds, a Bloomberg source recently mentioned that VietinBank will receive a syndicated loan worth one billion US dollars from 20 parties. This is the second syndicated loan of VietinBank in 2021, after the borrowing of 790 million US dollars in August. The four parties jointly appointed, arranged and set up the book include UOB (300 million US dollars), SMBC (100 million US dollars), Taipei Fubon (100 million US dollars), and HSBC (48 million US dollars).

The loan arrangers include OCBC (47 million US dollars), Emirates NBD (45 million US dollars), National Bank of Kuwait Singapore (45 million US dollars), Bank of Communication Singapore (42 million US dollars) and Bank of Baroda Singapore (41 million US dollars), etc.

 

Category: Finance, Vietnam

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