Viet Nam Bank for Industry and Trade (VietinBank) plans to issue 400,000 bonds worth VND10 million each to raise its capital by VND4 trillion (US$174.7 million).

These will be non-convertible bonds unsecured by property.

The scheduled date for issuance is June 28, and the deadline for registration and payment is from June 5 to 25.

VietinBank plans to issue bonds to the public for a term of 10 years. After five years, VietinBank can exercise the right to buy back all the above bonds, as it is not allowed to buy a part of the bonds.

The bond interest rate is floating and is determined by the reference interest rate (the 12-month saving deposit rate of Agribank, Vietcombank, BIDV and VietinBank) plus 0.8 per cent. This bonus interest rate is lower than the previous bond issuance (1.2 per cent).

The proceeds are expected to supplement VietinBank’s operational capital and improve its financial capacity.

Specifically, VND1.232 trillion will be used for medium- and long-term loans to enterprises operating in the field of electricity, VND893 billion for the electricity sector, VND591 billion for the water sector, VND475 billion for steel and VND220 billion for the wood industry. The remaining VND579 billion will be used for other businesses.

Last year, VietinBank had two issuance bonds, which earned the bank VND4.2 trillion. — VNS