BIDV issued over 2.5 trillion VND in bonds in August 2024.

The Vietnam Investment and Development Bank ( BIDV - HoSE: BID) has just announced information regarding the results of its private placement of BIDV bonds.

Accordingly, the bank has successfully issued two tranches of bonds with codes BIDLH2431028 and BIDLH2432029. The BIDLH2431028 tranche has a total issuance value of VND 900 billion and was issued in the domestic market.

The bond issue was launched on August 21, 2024, with a 7-year term, expected to mature in 2031. The issuance interest rate is 5.78% per annum.

On the same day, the bank also raised funds through bond issuance BIDLH2432029 worth VND 95 billion, with an 8-year term, expected to mature in 2032.

According to data from the Hanoi Stock Exchange, in the first eight months of 2024, BIDV raised a total of 28 bond tranches. In August alone, the bank raised four bond tranches with a total value of VND 2,535 billion.

Information on bonds issued by BIDV in August 2024.

The largest bond issue is BIDLH2430025 with a total face value of VND 1,000 billion, issued on August 8th, with a 6-year term, expected to mature in 2030. The issuance interest rate is 5.58% per annum.

Conversely, this month the bank also spent 600 billion VND to repurchase two tranches of bonds ahead of schedule.

Most recently, on August 12th, BIDV repurchased ahead of schedule the BIDL2129026 bond with a face value of VND 500 billion. The bond issue had an 8-year term, was issued on August 12th, 2021, and was expected to mature in 2029.

In May, BIDV's Board of Directors approved the plan to issue private placement bonds for the second time in 2024. Accordingly, BIDV plans to issue up to VND 6,000 billion in bonds to increase Tier 2 capital.

The Tier 2 capital will be used by BIDV to lend to the economy , invest, and/or carry out other permitted activities as stipulated by law. The target investors are professional securities investors as defined by the Securities Law.

The bonds are issued in book-entry form with a face value of VND 100 million or multiples of VND 100 million. The issue price is 100% of the face value with a maturity of over 5 years.

BIDV will determine the specific interest rate for each issuance based on market conditions, the bank's capacity to accept/demand capital at the time of issuance, and in accordance with the State Bank of Vietnam's interest rate regulations for each period.

The bank plans to issue a maximum of 30 tranches between June-August 2024 and September-November 2024. During these two periods, BIDV expects to offer a maximum of 15 tranches, with a minimum offering volume of VND 50 billion per tranche. The distribution period for each tranche is a maximum of 30 days from the date of prior announcement of the offering.

Source: https://www.nguoiduatin.vn/bidv-phat-hanh-hon-2500-ty-dong-trai-phieu-trong-thang-8-2024-204240829163410921.htm