ABBank wants to raise an additional 5,000 billion VND through private placement bonds.

The Board of Directors of An Binh Commercial Joint Stock Bank (ABBank – UPCoM: ABB) has just approved the plan for the second private placement of bonds in 2023.

Specifically, ABBank plans to issue 5,000 billion VND worth of bonds through a private placement, with a face value of 100 million VND per bond. The bond term will range from 1 to 5 years, with the specific term determined by the General Director for each issuance.

The bonds are issued in book-entry form with a nominal interest rate also determined by the General Director and equivalent positions, ensuring it is consistent with market interest rates and regulations.

This is a non-convertible, non-warrant bond issue, not secured by the issuer's assets. The bonds are open to professional securities investors, including Vietnamese institutions (including credit institutions and branches of foreign banks) and foreign institutions as defined by law.

The issuance method is direct sale to investors and/or through an issuing agent. The principal of the bonds is paid in a lump sum on the maturity date or on the date ABBank repurchases the bonds. Interest is paid periodically annually.

The bond issuance is planned to be a maximum of 10 tranches, with a maximum issuance volume of VND 2,000 billion per tranche. The specific issuance quantity, volume, and timing will be decided by the General Director. The expected issuance period is from November 1st to December 31st, 2023.

The proceeds from the bond issuances will be used by ABBank to provide loans to individual and corporate customers. The funds raised from the bond issuances will be utilized before March 31, 2024.

Specifically, ABBank plans to use VND 3,500 billion for lending to individual customers and VND 1,500 billion for lending to corporate customers.

In the case of disbursement according to schedule, the temporarily idle funds obtained from the issuance of bonds will be used to deposit at the State Bank of Vietnam and other credit institutions.

Previously, in August, ABBank's Board of Directors also approved the plan to issue private placement bonds in the first phase of 2023 with a total issuance value of VND 6,000 billion. ABBank will use VND 4,500 billion of the funds raised for customer lending and VND 1,500 billion for corporate lending .

Thu Huong

Source: https://www.nguoiduatin.vn/abbank-muon-huy-dong-them-5-000-ty-dong-trai-phieu-rieng-le-a638012.html