VietinBank (HoSE: CTG) announced to complete the offering of 7,000 billion dong of 8-year and 10-year bonds. All bonds were distributed to 13,431 domestic investors, including 656 institutions and 12,775 individuals.
The bond interest rate is equal to the reference interest rate (the average interest rate of personal savings deposit in Vietnam Dong, paid after 12 months) of Agribank, BIDV, VietinBank, Vietcombank) plus 0.9% / year with the 2028 bonds and add 1% / year to 2030 bonds.
The issued bonds are non-convertible, not accompanied by warrants, are not secured with VietinBank’s assets and satisfy the conditions for being included in tier 2 capital.
Offering price is equal to par value of 100,000 dong / bond. Issuance purpose is to increase the working capital and loan the economy, ensure safe operating ratios as required by the State Bank.
The bank collected 7,000 billion dong to supplement loan capital. Photo: Vietinbank.
The bank will use the money raised in the first phase to add to the medium and long term loans in 4 areas including electricity and gas production and distribution: 3,710 billion dong; processing and manufacturing industry 2,170 billion VND; mining 670 billion VND and other sectors 450 billion VND.
According to information released earlier, the bank will continue to offer for sale of VND 3,000 billion, including the above 2 types of bonds in the third quarter to the fourth quarter, each class of VND 1,500 billion. The proceeds are also supplemented with loans of 1,620 billion VND in manufacturing and power distribution, 960 billion VND in industry and manufacturing and processing, 290 billion VND in mining and the rest in other industries.
By the end of June, the issuance of valuable papers decreased by 10% compared to the beginning of the year, to 51,266 billion VND. Customer deposits increased by 2.2% to 913,319 billion.
Total assets as of the end of June were at 1.24 million billion, slightly down from the beginning of the year. Loans to customers before provisions 941,487 billion dong, up 0.7%. Bad debt is 15,967 billion dong, 48% higher than the beginning of the year. In which, group 3 debt increased by 2.5 times to 7,155 billion dong, just behind group 1 debt. NPL ratio increased from 1.16% to nearly 1.7%.