The Board of Directors of Vietnam Joint Stock Commercial Bank for Industry and Trade ( VietinBank ; HoSE: CTG) has just approved the overall plan to issue bonds to increase tier 2 capital (secondary bonds), and at the same time lend to the economy in a separate form in 2023.
Specifically, the bank plans to issue a maximum of 30 batches from the second quarter to the fourth quarter of 2023 with a total maximum bond issuance volume of VND16,000 billion. The face value of each bond is VND100 million. These are non-convertible bonds, without warrants, without guarantees and with a term of 6 years or more.
The nominal interest rate of bonds is fixed or floating, guaranteed with market interest rates and current regulations on interest rates of the State Bank at the time of bond issuance.
In case the nominal bond interest rate is a floating interest rate, the interest rate will be equal to the average interest rate of savings deposits - paid in advance - with a term of 12 months.
Principal payment is a one-time payment at maturity. Interest payment is paid periodically once a year.
Proceeds from bond offerings in 2023 will be used by VietinBank to increase Tier 2 capital and lend to the economy .
Plan to use temporarily idle capital in case of disbursement according to schedule, this capital will be provided by the bank for short-term loans to customers with short-term, temporary capital needs.
Proceeds from bond offerings in 2023 will be used by VietinBank to increase Tier 2 capital and lend to the economy.
Previously, on May 31, VietinBank also received a certificate of registration for public bond offering from the State Securities Commission. Accordingly, this bank will offer VND9,000 billion worth of bonds to the public with a face value of VND100,000/bond through two issuances.
In the first phase, the bank plans to issue VND2,000 billion in 8-year bonds and VND3,000 billion in 10-year bonds. The distribution period will be within 90 days from the effective date of the registration certificate.
In the second phase, VietinBank will offer VND1,500 billion in 8-year bonds and VND2,500 billion in 10-year bonds. The second phase offering period must not exceed 90 days. The interval between the two phases must not exceed 12 months.
On the stock market, CTG code closed on June 2 at VND28,650/share, up 2.33% .
Source
Comment (0)