Customers perform transactions at a BIDV branch. The bank will issue bonds worth VNĐ3 trillion in September. – Photo bidv.com.vn

The Bank for Investment and Development (BIDV) will issue bonds worth VND3 trillion (roughly US$129 million) next month, the bank announced.

The bonds are non-convertible, unsecured and eligible to be included in its tier 2 capital.

The issuance includes VND2.5 trillion seven-year bonds and VND500 billion 10-year bonds with face value of VND10 million each. The interest rate will be determined by the referenced interest rate plus 1.2 per cent for the seven-year bonds and 1.3 per cent for the 10-year bonds.

The reference rate is the average of the deposit rates of 12-month term of four banks including Vietcombank, BIDV, Vietinbank and Agribank.

The bond issuance aims to raise working capital for its mid- and long-term loan demand.

BIDV plans to disburse VND2 trillion in the industry and industrial commerce sectors, VND500 billion in the gas, electricity production and distribution, VND100 billion in the construction and VND400 billion in other areas.

The time to register to buy bonds is from August 27 to September 25. – VNS