MB wants to mobilize 30,000 billion VND from bonds to serve business goals

The Board of Directors (BOD) of the Military Commercial Joint Stock Bank (MB - Code: MBB) has just announced a resolution approving the plan to issue regular bonds in 2025 in the form of private offering.

According to the plan, MB plans to issue 10,000 billion VND in bonds to increase Tier 2 capital and a maximum of 20,000 billion VND in regular bonds, with a face value of 100 million VND/bond with a term of 2 to 3 years, the bonds come with the right to buy/sell before maturity after 1 or 2 years.

The bonds are issued in the form of book entries. These are non-convertible bonds, without warrants, unsecured and not secondary debt of the issuing organization. The bank plans to offer a maximum of 50 tranches, ensuring that the total cumulative value of the bonds at par value is a maximum of VND20,000 billion.

The total time for offering bonds in multiple tranches shall not exceed 6 months from the issuance date of the first tranche. The subjects of the offering shall be organizations and/or individuals who meet the conditions of being professional securities investors in accordance with legal regulations.

MB wants to mobilize 30,000 billion VND from bonds to meet credit needs

MB said that the purpose of the issuance is to serve the lending needs of individual and/or institutional customers of the bank to meet the business growth target in 2025 and the following years, in accordance with the provisions of the Law on Credit Institutions. The time of disbursement of capital raised from the bond issuance will depend on the actual situation of using the proceeds at that time but not more than 180 days from the date of announcement of the results of the offering.

In addition, the bank also approved a plan to issue Tier 2 capital-raising bonds issued in the form of a private offering. According to the plan to issue Tier 2 capital-raising bonds once, MB plans to offer a maximum of 40,000 bonds, with a face value of VND 100 million/bond, thereby mobilizing VND 4,000 billion. The bonds can be offered in one or more batches. The implementation period is from May 2025.

In the second issuance of Tier 2 bonds to increase capital, MB plans to offer a maximum of 60,000 bonds, with a face value of VND100 million/bond, thereby mobilizing VND6,000 billion. The bonds can be offered in one or more tranches. Implementation time is from June 2025.

It is known that both issuances are non-convertible bonds, without warrants and without collateral. The bond term is from 5-10 years. The bank plans to offer them to institutional investors who meet the legal regulations on professional securities investors.

According to Decree 69/2025/ND-CP effective from May 19, 2025, the total ownership of foreign investors in commercial banks receiving compulsory transfer of weak banks may exceed 30%, but not exceed 49% of charter capital. However, this regulation does not apply to banks in which the State holds more than 50% of charter capital.

This regulation facilitates joint stock commercial banks such as MB, VPBank and HDBank , which have participated in the compulsory transfer of weak credit institutions. Meanwhile, Vietcombank is not subject to this regulation because the State Bank currently holds 74% of its charter capital.

At the same time, the new Decree creates conditions for banks to issue additional capital to foreign shareholders to support the acceleration of the restructuring process and improve the capital adequacy ratio (CAR). For example, MB is planning to contribute a maximum of VND5,000 billion to MBV Bank during the restructuring period. With the current CAR level of about 10% and not using Tier 2 capital, MB may need to increase Tier 1 capital, although the state ownership factor may be a barrier due to concerns about dilution.

However, sharing with the press about the eligibility to increase the foreign room to 49%, Mr. Luu Trung Thai, Chairman of MB's Board of Directors, said that foreign room is not too important for MB. According to MB's Chairman, foreign room usually aims at two main goals: attracting strategic investors and seeking higher stock value. But at present, for MB, the important thing is the intrinsic value and business strength.

MB Chairman also said that in recent times, the bank has received a lot of attention from investment funds. MB also highly appreciates this and has received many comments, information and suggestions from investment funds. These investors have relatively high requirements for information transparency and MB also has a higher responsibility in this activity.

Source: https://baodautu.vn/mb-muon-huy-dong-30000-ty-dong-tu-trai-phieu-phuc-vu-muc-tieu-kinh-doanh-d291698.html