Hanoi Stock Exchange (HNX) has just announced that the Joint Stock Commercial Bank for Investment and Development of Vietnam ( BIDV , HoSE: BID) has completed the issuance of 3 bond lots with codes BIDLH2330007, BIDLH2330008, BIDLH2330009 with a face value of 1 billion VND/bond.
The bond lot code BIDLH2330007 is worth VND 269 billion with a term of 7 years, from August 30, 2023 to August 30, 2030, the bond lot code BIDLH2330008 is worth VND 240 billion with a term of 8 years, from August 30, 2023 to August 30, 2031 and the bond lot code BIDLH2330009 is worth VND 60 billion with a term of 10 years, from August 30, 2023 to August 30, 2033.
Regarding bond issuances, in the third and fourth quarters of 2023, BIDV plans to issue up to 5 more bond issuances, with a total value of VND 2,500 billion and a par value of VND 100 million/bond.
As planned, the bank will issue a maximum of 5 tranches, with the expected issuance volume of each tranche being at least VND50 billion. The expected issuance period is from the 3rd to 4th quarter of 2023. The bond term is from 1 to 5 years.
Interest rates are specifically determined for each issuance, based on market conditions, BIDV's ability to accept/capital needs at the time of issuance. Bond interest is paid later, annually or according to the bank's regulations at each issuance. Bond principal is paid once on the maturity date, except in cases where the bank buys back the bond before maturity or according to BIDV's regulations at each issuance.
BIDV has just successfully issued nearly 600 billion VND in bonds.
The proceeds from the bond issuance are used by BIDV to lend to customers in the economy . These bonds are non-convertible, unsecured, and not a secondary debt of BIDV.
Previously, in June 2023, BIDV also announced the issuance of VND 8,100 billion in non-convertible bonds, without warrants and without collateral to increase tier-two capital from June to the end of September 2023.
According to data from the Hanoi Stock Exchange (HNX), from June 29 to September 5, this bank issued a total of 6 bonds with a face value of VND1 billion with interest rates ranging from 6.7% to 7.7%. The total issued volume was 2,545 bonds, thereby mobilizing VND2,545 billion .
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