Vietinbank successfully issued 500 billion VND in bonds

Recently, the Hanoi Stock Exchange (HNX) announced the results of the public bond offering of the Vietnam Joint Stock Commercial Bank for Industry and Trade ( Vietinbank , HoSE: CTG).

Accordingly, VietinBank has successfully issued 5,000 bonds with code CTGL2333001 with a total value of VND 500 billion with an interest rate of 7.6%/year.

This bond lot was issued on June 29, 2023 with a term of 10 years, equivalent to a maturity date of June 29, 2033.

Previously, in early June, Vietinbank's Board of Directors approved the overall plan to issue up to 30 batches of Tier 2 capital-raising bonds (secondary bonds) in a private manner in 2023.

Specifically, the bank plans to issue a maximum of 30 batches from the second quarter to the fourth quarter of 2023 with a total maximum bond issuance volume of VND16,000 billion. The face value of each bond is VND100 million. These are non-convertible bonds, without warrants, without guarantees and with a term of 6 years or more.

Proceeds from bond offerings in 2023 will be used by VietinBank to increase Tier 2 capital and lend to the economy .

Plan to use temporarily idle capital in case of disbursement according to schedule, this capital will be provided by the bank for short-term loans to customers with temporary capital needs.

The nominal interest rate of bonds is 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 nominal bond interest rate is a floating interest rate, the interest rate will be equal to the average interest rate of savings deposits - paid in advance - with a term of 12 months .

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Source: https://www.nguoiduatin.vn/vietinbank-phat-hanh-thanh-cong-500-ty-dong-trai-phieu-a616294.html