Vietbank to issue bonds worth over $41 million

A Vietbank branch in HCM City. The bank plans to make a public issue of 100,000 bonds worth VNĐ1trillion (US$41.17 million). — Photo courtesy of the bank

HCM CITY — Vietnam Thương Tín Commercial Joint Stock Bank (Vietbank – VBB) plans to make a public issue of 100,000 bonds worth VNĐ1trillion (US$41.17 million).

The VNĐ10 million ($411.7) non-convertible bonds will be without warrants or collateral, have a tenor of seven years and offer floating interest rates equal to the reference interest rate plus 2.5 per cent for the first five years and 3.5 per cent subsequently. The interest will be paid annually.

The minimum subscription is for five bonds, equivalent to VNĐ50 million.

The issuance date is March 27, and investors can register to buy at Vietbank’s transaction points between January 10 and March 26.

The proceeds will be used to supplement capital, lend for medium- and long-term projects and ensure limits and safety ratios for banking operations.

This year the bank will focus on scaling up operations, operational safety, compliance with regulations, and improving financial capacity.

It plans to invest in developing human resources, technology and risk management to international standards to ensure stable and sustainable growth. — VNS