The Board of Directors of the Joint Stock Commercial Bank for Industry and Trade of Vietnam (VietinBank; HoSE: CTG) has just approved the overall plan to issue bonds to increase tier 2 capital (secondary bonds), and at the same time provide loans to the economy in a separate form for the year. 2023.
Specifically, the bank plans to offer up to 30 offers from the second quarter to the fourth quarter of 2023 with a maximum bond issuance volume of VND 16.000 billion. The par value of each bond is VND 100 million. This is a non-convertible, unwarranted, unsecured bond with a term of 6 years or more.
Nominal bond interest rates are fixed or floating, guaranteed with market interest rates and current regulations on interest rates of the State Bank at the time of bond issuance.
In case the bond's nominal interest rate is a floating interest rate, the interest rate will be equal to the average interest rate on savings deposits - paid later - with a term of 12 months.
The principal payment is a one-time payment at maturity. Interest payment period is to be paid once a year.
Proceeds from bond offerings in 2023 will be used by VietinBank to raise Tier 2 capital and lend to the economy.
The plan to use the collected capital temporarily idle, in case of disbursement according to the progress, this capital will be provided by the bank for short-term loans to customers with short and temporary capital needs.
Proceeds from bond offerings in 2023 will be used by VietinBank to raise Tier 2 capital and lend to the economy.
Previously, on May 31, VietinBank also received a certificate of registration for a public bond offering from the State Securities Commission. Accordingly, this bank will offer 5 billion dong of bonds to the public with par value of 9.000 dong/bond through two issuances.
In the first phase, the bank plans to issue VND 2.000 billion of 8-year bonds and VND 3.000 billion of 10-year bonds. Distribution time within 90 days from the effective date of registration.
In the second phase, VietinBank will offer VND 1.500 billion of 8-year bonds and VND 2.500 billion of 10-year bonds. The time for the second offering must not exceed 90 days. The interval between the two episodes should not last more than 12 months.
On the stock market, the ticker CTG closed on June 2 at 6 VND/share, up 28.650%..
