Viet Nam Prosperity Commercial Bank (VPBank) plans to issue international bonds with a total value of up to US$1.12 billion.

The bank has sent a document to collect ideas from its shareholders on the two plans for issuance and listing of international bonds.

Accordingly, VPBank wants to offer bonds in foreign instalments under the Euro Medium Term Note Programme. The par value of bonds is a multiple of $1,000 or other par value in accordance with international bond market practices. The total value of the issuance was a maximum of $1 billion with terms of three to five years. It is expected to issue this year and next year.

Bond interest rates can be fixed, floating or a combination of both or other structured interest rates. The purpose of issuance is to increase the scale of capital for banks.

This bond would be issued internationally to investors outside the US and will be listed on the Singapore Stock Exchange.

VPBank is also collecting ideas on the issuance of a green bond in the form of private issuance for some investors with a volume of $120 million.

The Green Bond would have a three-year term with negotiated interest rate. It is expected to issue in 2019 and 2020. The purpose of issuance is to finance the green list or loan that meets the green criteria.

Last year, VPBank reached revenue of more than VND31 trillion, posting 25 per cent year-on-year increase and taking the lead among private joint-stock commercial banks. It also had record profit of around VND9.2 trillion in 2018.

This year, the bank targets revenue increase of 20 per cent and credit growth of less than 15 per cent according to the State Bank of Viet Nam’s approval. It expects to earn pre-tax profit of VND9.5 trillion.

In recent years, many banks also wanted to issue bonds to mobilise capital. TPBank wanted to issue $200 million international bonds, ACB with VND2.5 trillion bond in three-year term and Vietinbank with VND10 trillion.

With the expected issuance value of $1.12 billion, the issuance of VPBank would be the largest of its kind so far. — VNS