Vietinbank to issue $130mln worth of bonds this year

The bonds offered are non-convertible, not secured by assets and without an attached warrant.

Of the total, half are 8-year bonds that will mature in 2028 while the remainders are 10-year bonds maturing in 2030.

Interest rates are calculated by reference interest rate plus 0.9 percent per year for bonds maturing in 2028 and reference interest rate plus 1 percent for those in 2030.

On July 30, the bank announced it had successfully distributed all 70 million bonds, worth VND7 trillion, in the tier-1 public offering.

Vietinbank plans to offer a total of 100 million bonds to the public in 2020 to raise the bank’s working capital and expand credit while ensuring prudential ratios are in line with regulations by the State Bank of Vietnam.

In the first half of this year, the bank reported a 39.6-percent increase in after-tax profit to over VND6.01 trillion.

► Vietnam’s banks to cut lending rates by 2.5% to back coronavirus-hit firms

Source: VietnamPlus