LienVietPostBank offers 19.5 million bonds of 7-year and 10-year terms with a par value of VND100,000 per bond. (Photo: SGGP)
Lien Viet Post Commercial Joint Stock Bank (LienVietPostBank), on December 16, said that to supplement the medium and long-term mobilized capital to meet the borrowing needs of customers, the bank offered to sell VND1.95 trillion of bonds to the public in Phase 1 in 2022.
From now until December 30, LienVietPostBank offers 19.5 million bonds of 7-year and 10-year terms with a par value of VND100,000 per bond, equivalent to VND1.95 trillion. These bonds are non-convertible, unsecured, and not accompanied by warrants. They are secondary debts and satisfy the conditions to be included in the bank's Tier 2 capital.
In this offering, the bond interest rates range from 10.2 percent to 10.5 percent per annum. Specifically, the interest rate applied to bonds is a floating interest rate, calculated by the reference interest rate, which is the average interest rate for 12-month term personal savings deposits in Vietnamese dong with interest payment at maturity of four banks, including BIDV, Vietinbank, Agribank, and Vietcombank, at the interest rate determination date, plus a margin. Of which, the 7-year term interest rate is the reference interest rate plus a margin of 2.8 percent per annum, and the 10-year term one is the reference interest rate plus a margin of 3.1 percent per annum.
Investors can register to buy LienVietPostBank bonds from now until December 30 at all LienVietPostBank transaction points nationwide and through the issuing agent - Saigon-Hanoi Securities Joint Stock Company. The minimum quantity for individual investors is 200 bonds, and that for institutional investors is 10,000 bonds.
LienVietPostBank will use the proceeds from the first public bond issuance in 2022 to increase its operating capital size and provide loans to customers in the first quarter of 2023.