According to the plan, MB expects to issue VND 10,000 billion in bonds to increase Tier 2 capital and up to VND 20,000 billion in ordinary bonds, with a face value of VND 100 million per bond and a maturity of 2 to 3 years, with the bonds also including the right to repurchase/sell before maturity after 1 or 2 years.
The bonds are issued in book-entry form. These are non-convertible, non-warrant, unsecured bonds and are not subordinated debt of the issuer. The bank plans to offer a maximum of 50 tranches, ensuring the total cumulative value of bonds issued across all tranches at face value reaches a maximum of VND 20,000 billion.
The total duration of the bond offering in multiple tranches shall not exceed 6 months from the date of issuance of the first tranche. The target recipients of the offering are organizations and/or individuals who meet the eligibility requirements for professional securities investors as stipulated by law.
MB wants to raise 30 trillion VND through bonds to meet its credit needs. |
MB stated that the purpose of the issuance is to meet the lending needs of individual and/or institutional customers of the bank to achieve business growth targets in 2025 and subsequent years, in accordance with the Law on Credit Institutions. The disbursement of funds raised from the bond issuance will depend on the actual use of the funds at that time, but no later than 180 days from the date of announcement of the offering results.
In addition, the bank also approved a plan to issue Tier 2 capital bonds through a private placement. Under the first issuance plan for Tier 2 capital, MB plans to offer a maximum of 40,000 bonds, each with a face value of VND 100 million, thereby raising VND 4,000 billion. The bonds may be offered in one tranche or multiple tranches. The implementation period starts in May 2025.
In its second Tier 2 capital issuance, MB plans to offer a maximum of 60,000 bonds, each with a face value of VND 100 million, thereby raising VND 6,000 billion. The bonds may be offered in one tranche or multiple tranches. The issuance period starts in June 2025.
Reportedly, both issuances are non-convertible bonds, without warrants and without collateral. The bond terms range from 5 to 10 years. The bank plans to offer them to institutional investors who meet the legal requirements for professional securities investors.
According to Decree 69/2025/ND-CP, effective from May 19, 2025, the total ownership of foreign investors in commercial banks undergoing mandatory transfer of weak banks may exceed 30%, but not more than 49% of the charter capital. However, this regulation does not apply to banks where the State holds more than 50% of the charter capital.
This regulation facilitates the transfer of weak credit institutions by joint-stock commercial banks such as MB, VPBank, and HDBank . Vietcombank, however, is not subject to this regulation because the State Bank of Vietnam currently holds 74% of its charter capital.
At the same time, the new Decree facilitates banks to issue additional capital to foreign shareholders to support the acceleration of restructuring and improve their capital adequacy ratio (CAR). For example, MB is planning to contribute up to VND 5,000 billion to MBV during the restructuring phase. With its current CAR of around 10% and not yet utilizing Tier 2 capital, MB may need to increase Tier 1 capital, although state ownership could be a barrier due to concerns about dilution.
However, in an interview with the press regarding the possibility of increasing the foreign ownership limit to 49%, Mr. Luu Trung Thai, Chairman of the Board of Directors of MB, stated that the foreign ownership limit is not overly important to MB. According to the Chairman, the foreign ownership limit usually aims at two main objectives: attracting strategic investors and seeking higher share values. But currently, for MB, what matters most is the intrinsic value and strength of the business.
The Chairman of MB also stated that the bank has received considerable interest from investment funds recently. MB highly appreciates this and has received many valuable suggestions, information, and recommendations from these funds. These investors have relatively high demands for transparency, and MB has a greater responsibility in this regard.
Source: https://baodautu.vn/mb-muon-huy-dong-30000-ty-dong-tu-trai-phieu-phuc-vu-muc-tieu-kinh-doanh-d291698.html
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