Commercial Joint Stock Bank for Foreign Trade of Vietnam (Vietcombank, HoSE: VCB) has just announced information on the bond issuance in 2020.
Accordingly, the bank expects to issue a maximum of 60 million five-year bonds with par value of 100,000 dong per bond, equivalent to a maximum issuance value of six trillion dong.
This type of bond creates a direct debt repayment obligation, it is not a secondary debt and not secured by assets. The bond interest will be paid periodically every year. The bond principal will be paid in lump-sum at the maturity date or the due date of the required bond repurchase as prescribed.
According to Vietcombank, the purpose of the bond issuance is to supplement working capital and meet the demand for loans in dong of the bank’s medium and long-term projects to serve socio-economic development. In addition, the capital raised from the bond issuance will help Vietcombank improve its financial capacity, ensure compliance with the safety criteria prescribed by the SBV.
According to the bank’s financial statement, by the end of 2019, the total valuable papers in circulation of Vietcombank reached nearly 21.384 trillion dong. In particular, the value of promissory notes and bonds was more than 21 trillion dong.
