BIDV, VPBank, Nam A Bank... mobilize thousands of billions of VND through bonds

(Dan Tri) - Capital mobilization through bonds takes place in the context of banks actively increasing capital to improve liquidity and meet operational safety requirements.

In the fourth quarter, many banks continued to promote capital mobilization through the bond channel.

Banks accelerate capital mobilization

According to the Hanoi Stock Exchange (HNX), BIDV has just issued 360 billion VND worth of 2-year bonds with a fixed interest rate of 6%/year. Previously, this bank had continuously mobilized nearly 1,600 billion VND through 4 bond lots, bringing the total capital call value at the end of November to nearly 2,000 billion VND.

Bac A Bank also completed the offering of BAB12509 bonds worth VND1,000 billion with a term of 3 years and an interest rate of 6.7%/year. This is the 9th lot the bank has issued this year, after withdrawing VND800 billion in mid-November.

Meanwhile, Nam A Bank offered 10 million bonds, equivalent to VND1,000 billion, with floating interest rates, to supplement tier 2 capital and improve capital safety indicators.

VPBank also approved a plan to issue VND500 billion in private bonds before December 10, after completing a VND1,000 billion issuance in November.

The increase in bond mobilization takes place in the context of banks needing to consolidate medium- and long-term capital to reduce liquidity pressure and meet risk management requirements.

Many banks increase capital mobilization through bond channels (Photo: DT).

The leading bank in capital mobilization through bond channel

According to FiinRatings experts, banks are stepping up bond issuance to supplement Tier 2 capital, with the largest expected scale in many years. This development reflects the pressure to comply with capital safety standards under Circular 14.

Statistics show that Tier-1 capital still accounts for the majority of the capital structure of the banking system, but the level of dependence on Tier-2 capital has increased since 2024, especially through bond issuance activities of state-owned commercial banks and medium-sized joint stock commercial banks.

In the financial structure of a bank, Tier-1 capital is considered the “core” capital, including charter capital and retained earnings. This is the most sustainable resource, reflecting the actual financial health and acting as the first protective buffer when the bank is at risk.

Meanwhile, Tier-2 capital is additional capital, mainly formed from issuing long-term bonds and risk reserves. This type of capital helps increase the capital safety ratio but is not as stable as Tier-1 capital.

Therefore, many banks increased the issuance of long-term bonds to increase Tier 2 capital, meeting the requirements of risk management as prescribed. The issuance of bonds with terms of five years or more increased sharply in 2023 and has remained stable until now.

According to data compiled by the Vietnam Bond Market Association (VBMA) from the HNX and the State Securities Commission (SSC), the total value of corporate bond issuance in the first 10 months of the year reached VND481,944 billion, up 37% over the same period last year.

By industry group, banks continue to hold the leading position with VND 344,400 billion, accounting for 69% of the total value. The average interest rate of this group is around 5.9%/year with an average term of 4.5 years. The top 3 organizations with the largest issuance value are Techcombank (about VND 46,000 billion), ACB (about VND 36,500 billion) and OCB (about VND 32,700 billion).

Source: https://dantri.com.vn/kinh-doanh/bidv-vpbank-nam-a-bank-huy-dong-hang-nghin-ty-dong-qua-trai-phieu-20251205090416966.htm