Saturday, December 14, 2024 12:08:08 PM - Markets closed
VN-INDEX 1,262.57 -4.78/-0.38%
HNX-INDEX 227.00 -0.99/-0.43%
UPCOM-INDEX 92.54 -0.14/-0.15%
Banks race to issue bonds to raise capital
vietnamnews - 8/16/2024 10:35:17 AM
 (0 ratings. You must sign in to rate.)
Many banks have issued large amounts of bonds to raise thousands of billions of Vietnamese đồng, pushing interest rates to around 8 per cent per year, much higher than that of normal savings.
 
 
A bank teller counts money at a transaction office in Hà Nội. Banking was the industry with the largest proportion of bond issuance value in the first seven months of this year, accounting for 68.2 per cent of the total issuance value. Photo cafef.vn
 
Many banks have issued large amounts of bonds to raise thousands of billions of Vietnamese đồng, pushing interest rates to around 8 per cent per year, much higher than that of normal savings.
 
BVBank has recently announced the public offering of bonds in the first phase through direct issuance at the bank’s transaction offices. BVBank plans to have six issuances with a total of 56 million bonds. In which, the first phase will offer 15 million bonds, with a term of six years and a fixed interest rate of 7.9 per cent per year for the first year. From the second year, the reference interest rate is the 12-month individual savings interest rate of four banks Vietcombank, VietinBank, BIDV and Agribank plus a margin of 2.5 per cent per year.
 
With each bond having a face value of VNĐ100,000, BVBank expects in the first phase, it will mobilise VNĐ1.5 trillion from the public bond channel. The bank targets individual customers and organisations in its public bond offering this time.
 
The board of directors of ACB has recently also approved a plan to issue individual bonds for the second time in the 2024 fiscal year with a maximum total scale of VNĐ15 trillion. Accordingly, ACB will issue a maximum of 150,000 bonds with a par value of VNĐ100 million per bond. The issuance price is equal to the par value, with a maximum term of five years. The purpose of bond issuance is, according to ACB, to serve lending and investment needs and ensure compliance with safety indicators as prescribed by the State Bank of Vietnam.
 
The bonds have a maximum term of five years and a fixed or floating interest rate, depending on market demand. The offering subjects are institutional investors who meet the legal regulations for professional securities investors. 
 
Previously, Agribank and HDBank also offered bonds to the public to raise thousands of billions of đồng. This year, Agribank offered VNĐ10 trillion in bonds to the public to institutional, individual, and foreign investors at all its transaction offices nationwide. Agribank’s bond interest rate is nearly 7 percent a year. 
 
At HDBank, the public bond issue has a term of seven years. The bank expects to raise VNĐ1 trillion with a floating interest rate, applied to the entire term of the bond. The interest rate is calculated by the reference interest rate plus a margin of 2.8 per cent per year.
 
A report by the Vietnam Bond Market Association (VBMA) showed that last month, there were 33 private corporate bond issuances worth VNĐ31.3 trillion and one public issuance worth VNĐ395 billion. 
 
There have been 175 private bond issuances worth VNĐ168 trillion and 12 public issuances worth more than VNĐ4.5 trillion to date this year. Among the private issuances, rated bonds account for 7 per cent of the value.
 
Banking was the industry with the largest proportion of bond issuance value in the first seven months of this year, accounting for 68.2 per cent of the total issuance value. — VNS    
 
 
Read original article here
Newer News
12/12 Market declines for the third consecutive session
12/12 Market continues slight correction as VN-Index slips below 1,270 points
10/12 Stock market starts the second week of December on a positive note
10/12 Corporate bond market sees steep issuance decline amid persistently high default rates
09/12 Finance ministry to use AI in stock market surveillance
09/12 Realty stocks see signs of recovery
05/12 Pharma stocks on the rise
02/12 Public investment stocks face challenges
02/12 Positive short-term signals emerge in Vietnam’s stock market
29/11 Market edges up as liquidity continues to decline
Older News
15/08 Market remains subdued as liquidity continues to decline
15/08 Apparel, textile stocks shine with promise amid shifting order opportunities
14/08 Market edges up as foreign bloc continues to net buy
13/08 Bank bond issuance soars 140% amid debt crisis
13/08 Market continues recovery into new week
08/08 Surge in new individual securities accounts in July
08/08 Vinhomes to buy back 370m shares to protect investor's interest
07/08 Vietnam and Australia boost securities industry partnership
07/08 Market rebounds, VN-Index returns to 1,200 points
06/08 HoSE adds NVL to coming large-cap VN30 review
 
Newsletter Signup
Top Stories
VCCI recommends mineral mining rights be granted through auction and bidding
Central bank works to raise interbank rates and ease forex market
Inflation a concern following salary increases
National Council for Sustainable Development established
Việt Nam, Cambodia look forward to $20 billion trade
Market Update
Last updated at 3:05:01 PM
VN-INDEX 1,262.57 -4.78/-0.38%
Real-time chart
Top 5 Actives
Top 5 Gainers
Top 5 Losers
My Favorite Quotes
Your most recently viewed tickers will automatically show up here if you type a ticker in the Get Quotes box on the top of the page.
Company Research
Type in the symbol above for thorough background information, key statistics and financial information.
Stock Sectors
We continuously improve our services, here are the latest updates...
Portfolio
Allow you to monitor a customised group of securities. You can set up multiple Portfolios to help you better manage your investments.
Trigger Alerts
Get up-to-date alerts delivered directly to your email address.
Stock Screener
Allow you to filter the market and find exactly what sort of company you are looking for.
Live Terminal
Get instant access to FREE REAL-TIME streaming quotes for hundreds of stocks from HOSE, HNX and UPCOM exchanges.