Vietnam Thuong Tin Commercial Joint Stock Bank (Vietbank) will issue 300,000 bonds to the public with a face value of VND3 trillion (US$128.87 million) in three offerings.

The VND10 million ($429.7) non-covertible bonds will be without warrants or collateral, have a tenor of seven years and offer floating interest rates equal to the reference interest rate plus 2.5 per cent for the first five years and 3.5 per cent subsequently. The interest will be paid annually.

In the first tranche, 100,000 bonds worth VND1 trillion will be issued.

The minimum subscription is for five bonds equivalent to VND50 million.

The issuance will be on September 16, and investors can register to buy at Vietbank's transaction points between July 25 and September 15.

The proceeds will be used to increase tier-2 capital to meet the State Bank of Vietnam’s capital adequacy ratio requirements and supplement medium- and long-term loan funds.

Vietbank targets pre-tax profits of VND 1.09 trillion ($46.75 million) this year, an increase of 71.4 per cent from 2021, and total assets of over VND130 trillion ($5.58 billion).

It has got approval from the central bank to increase its charter capital by more than VND1 trillion to VND5.78 trillion. — VNS