Sacombank has issued 5,000 bonds to professional securities investors in a private placement to raise VND5 trillion (US$219.9 million).

The bonds have maturity terms of one to three years, are non-convertible, not associated with covered warrants, and involve direct repayment and are not subordinated debt.

The proceeds would be used to supplement working capital for medium- and long-term loans and increase the capital adequacy and other safety ratios, the bank said.

The issue was completed within a month, indicating its financial credibility, it said.

In March international credit rating agency Moody's Investors Service upgraded Sacombank's long-term deposit rating from Caa1 to B3 with a stable outlook, and its base credit assessment from Caa2 to Caa1.

They indicated Moody's recognition of the efforts made by the bank to improve asset quality, handle bad debts and improve ownership structure and governance. — VNS