Commercial Joint Stock Bank for Investment and Development of Vietnam (BIDV) said it successfully issued a total of 789 billion dong of medium and long-term bonds in the period from December 18th to 20th.
Accordingly, 100 billion dong of 15-year bonds were successfully issued at reference rate plus 1.7 percent per annum on December 18th.
On December 19th, BIDV issued 455 billion dong of six-year bonds at reference rate plus 1.4 percent per annum, and 34 billion dong of seven-year bonds at reference rate plus 1.5 percent per annum.
On December 20th, BIDV raised 200 billion dong of 10-year bonds at interest rate of 1.4 percent per annum.
BIDV said that the 15-year bonds can be repurchased after 10 years, six-year bonds can be repurchased after one year, and seven-year bonds can be repurchased after two years of issuance. Meanwhile, the 10-year bonds can be repurchased after five years.
The reference interest rate is the average of interest rates of individual savings interest rate in dong (interest rate paid at maturity) of four banks including Commercial Joint Stock Bank for Agriculture and Rural Development of Vietnam (Agribank), Commercial Joint Stock Bank for Industry and Trade of Vietnam (VietinBank), Commercial Joint Stock Bank for Investment and Development of Vietnam (BIDV) Hanoi area and Commercial Joint Stock Bank for Foreign Trade of Vietnam (Vietcombank) headquarter.
All of the above bonds are non-convertible with no warrants, unsecured or not guaranteed, issued and paid in dong. They established direct repayment obligations, are BIDV’s secondary debts, and satisfy the conditions to be included in BIDV’s Tier-2 capital according to current regulations.
Previously, in November, BIDV issued a total of more than 7.550 trillion dong of medium and long-term bonds, becoming the largest issuer on the market last month.
With continuous bond issuances along with the sale of capital to KEB Hana Bank, BIDV now as fairly abundant medium and long-term capital to serve business activities, especially medium and long-term lending in 2020.
