BIDV has successfully issued four bond batches, raising approximately VNĐ1.6 trillion (US$61 million) in a single day, marking a significant step in the bank’s strategy to strengthen long-term capital ahead of a major public bond offering planned for 2026-27.

 

According to information on the Hanoi Stock Exchange (HNX), the bank completed the issuance of bonds identified as BID12552, BID12553, BID12554 and BID12555.

 

The bonds carry notably long maturities, ranging from seven to 15 years, with interest rates between 6.03 per cent and 6.6 per cent annually.

 

This long-term issuance is intended to enhance BIDV’s medium- to long-term funding and ensure compliance with capital safety ratios as required by regulators.

 

At the same time, BIDV executed an early repurchase of the BIDLH2330017 bond, worth VNĐ322 billion.

 

This bond was originally issued on November 23, 2023, with a seven-year maturity and a buy-back clause after two years. By exercising its right to repurchase at the two-year mark, BIDV aims to optimise its debt portfolio.

 

BIDV Board of Directors has approved a resolution to proceed with a public bond offering strategy targeting VNĐ9 trillion, planned in three phases from the first quarter of 2026 to the first quarter of 2027.

 

The offering will consist of non-convertible bonds without warrants and secured assets, qualifying as Tier 2 capital for the bank.

 

The first phase is slated for the first half of 2026, with the sale of VNĐ4 trillion in bonds, featuring maturities of 7, 8 and 10 years. The second phase, scheduled for the second to third quarters of 2026, will involve the issuance of VNĐ3 trillion, while the final phase will cover the remaining VNĐ2 trillion at the end of 2026 and the start of 2027.

 

Interest rates for these bonds will be based on a reference rate plus an additional spread. For example, the maximum spread for a seven-year term will be 1.45 per cent per annum, 1.5 per cent for an eight-year term, and 1.6 per cent for a 10-year term.

 

Should the bank choose not to exercise the buy-back option, higher spreads will apply in the final years of maturity to protect investors’ interests.

 

The capital raised from this large-scale bond offering will be allocated primarily to lending activities in key sectors such as electricity, gas, industry and trade. — BIZHUB/VNS