Vietcombank to issue bonds worth $357m
Vietcombank to issue bonds worth $357m
The State Bank of Viet Nam (SBV) has approved the Joint Stock Commercial Bank for Foreign Trade of Viet Nam's (Vietcombank) plan to issue bonds worth VND8 trillion (US$357 million) in 2016.
The coupon rate would be based upon the decision of Vietcombank, the central bank said. It said the coupon rate must be in line with the market interest rates and existing regulations of the SBV, while ensuring business efficiency and safety for Vietcombank.
Vietcombank, Viet Nam's fourth largest bank in terms of assets, can sell its bonds to both Vietnamese and foreign individual and institutional investors.
The buyers of the bonds initially issued by Vietcombank on the primary market will not include credit institutions, foreign banks' branches and subsidiaries of credit institutions.The central bank asked Vietcombank to use the funds raised from issue of bonds for appropriate purposes and with efficiency.
The bank should focus on sectors of priority, restrict lending to potentially risky sectors such as real estate, and avoid credit risk concentration on large customers.
