ACB seeks approval to issue int’l bonds, move share listing to Saigon bourse

Xuan Thinh Tuesday | 06/02/2020 15:44

ACB targets 2020 pretax profit at $329 million, slightly increase from 2019. Photo: VietnamFinance

Vietnamese private lender is seeking approval to issue international bonds equivalent to 10% of its total customer deposit, according to documents prepared for annual shareholders’ meeting.

Asia Commercial Joint Stock Bank, one of the leading commercial banks in Vietnam said it needs to diversify capital mobilization channels and limit dependence on domestic foreign currency capital mobilization.

The bond value has not been decided, but the maximum value of bonds is expected at 10% of the total customer deposits. The medium and long term bonds will be issued US dollar. If approved, the lender will issue the bond in 2020. The interest rate has not been decided.

In addition, the bank plans to seek shareholders’ approval to move share listing to Ho Chi Minh City Stock Exchange (HoSE) from Hanoi Stock Exchange (HNX). The specific time will be decided by the Board of Directors.

ACB targets 2020 pretax profit at VND7,636 billion ($329 million), slightly increase from 2019. Bank’s total assets are projected to increase by 12%, while customer deposits to increase by 12% and lending growth at 11.75%.

Bad debt ratio by the end of 2020 is projected to below 2%. Bank also plans to propose the 2020 stock dividend ratio at 18%, according to documents obtained by Vietnam Business Review.

The lender reported first-quarter profit at VND1,925 billion ($82.8 million), up 12.9% from a year ago. As of end-March, ACB's total assets stood at nearly VND387.4 trillion ($16.7 billion), An increase of 1% compared to end-2019.

Lending grew 2.3% to nearly VND274.8 trillion ($11.8 billion). Deposits grew by 1.5% to VND312.6 trillion ($13.5 billion).