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Vietinbank to issue 400,000 bonds in 2018

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Việt Nam Bank for Industry and Trade (VietinBank) plans to issue 400,000 bonds worth VNĐ10 million each to raise its capital by VNĐ4 trillion (US$174.7 million).

Customers do transactions at a branch of Vietinbank. — Photo vietinbank.vn

 

These will be non-convertible bonds unsecured by property.

The scheduled date for issuance is June 28, and the deadline for registration and payment is from June 5 to 25.

VietinBank plans to issue bonds to the public for a term of 10 years. After five years, VietinBank can exercise the right to buy back all the above bonds, as it is not allowed to buy a part of the bonds.

The bond interest rate is floating and is determined by the reference interest rate (the 12-month saving deposit rate of Agribank, Vietcombank, BIDV and VietinBank) plus 0.8 per cent. This bonus interest rate is lower than the previous bond issuance (1.2 per cent).

The proceeds are expected to supplement VietinBank’s operational capital and improve its financial capacity.

Specifically, VNĐ1.232 trillion will be used for medium- and long-term loans to enterprises operating in the field of electricity, VNĐ893 billion for the electricity sector, VNĐ591 billion for the water sector, VNĐ475 billion for steel and VNĐ220 billion for the wood industry. The remaining VNĐ579 billion will be used for other businesses.

Last year, VietinBank had two issuance bonds, which earned the bank VNĐ4.2 trillion.

 

Source: VNS

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