The Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDVBID) had just announced to have successfully issued an individual 1,3 trillion dong of six-year bonds on November 29.
This type of bond was non-convertible, not accompanied by warrants, not guaranteed, issued and paid in dong, established direct repayment obligations, was BIDV’s secondary debt, and satisfied all conditions to be included in BIDV’s tier two capital according to current regulations.
With this type of bond, BIDV had the right to buy back from investors after one year.
Bond interest rates were calculated by reference interest rates, which were average of interest rates of personal savings deposits in dong and postpaid applicable to 12-month term of the four banks, including Vietnam Bank for Agriculture and Rural Development (Agribank), Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank), BIDv in Hanoi area, and the transaction office of Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), plus 1.3 percent per year.
Thus, in November, BIDV issued a total of 5.835 trillion dong of bonds with terms of six years and seven years.
