State-owned Agribank to issue $394m worth of bonds to public

An Agribank branch in HCM City. The fully state-owned bank plans to issue 10 million bonds worth VNĐ10 trillion to the public. — VNS Photo Bồ Xuân Hiệp

HCM CITY — The Vietnam Bank for Agriculture and Rural Development (Agribank) will issue 10 million bonds to the public, with a total value of VNĐ10 trillion (US$393.5 million).

Each bond will have a face value of VNĐ1 million and a tenor of ten years.

The interest rate on the bonds will be 2 per cent higher than the average 12-month savings deposit interest rate at the four biggest state-owned commercial banks – Agribank, Vietinbank, BIDV, and Vietcombank – in the first five years, and 3 per cent higher in the last five years.

Based on current interest rates, the rate may exceed 6 per cent per year for the first year.

The issuance of these bonds aims to raise long-term capital to meet the economy’s loan demand, particularly for agriculture and rural development, and small- and medium-sized enterprises.

Interested investors, both Vietnamese and foreigners, may register to purchase Agribank bonds from July 11 to August 14 at its headquarters or all transaction offices nationwide.

They can also purchase the bonds through its issuing agent Agribank Securities Joint Stock Company (Agriseco).

The bonds can also be used as collateral for bank loans at favourable interest rates.

Agribank exclusively distributes bonds issued by the bank itself in compliance with current legal regulations and central bank guidelines.

As a 100 per cent State-owned bank with nearly 2,300 branches and transaction offices nationwide, Agribank plays a key role in developing Việt Nam’s agricultural and rural sectors.

The bank has total assets of VNĐ2.1 quadrillion, capital of VNĐ1.9 quadrillion, and outstanding loans exceeding VNĐ1.5 quadrillion.

It offers programmes to provide interest and fee exemptions for customers and businesses, contributing to socio-economic recovery and development. — VNS