Techcombank to issue bonds worth $430 mln
Techcombank plans to issue VND10 trillion ($430 million) in bonds through two private placements before the end of this year.
The bonds will have a maturity date of up to three years with a par value of VND1 billion ($43,000) or a multiple of VND100,000 ($4.3), the bank said in a statement.
The interest rate of the bonds, which are non-convertible and non-collateral, will be decided by the bank’s CEO at each issuance.
The bonds are set to be issued in the third and last quarter of this year, with each issue worth VND5 trillion ($215 million).
Buyers will include individuals and corporates, both local and foreign, but not credit organizations, foreign bank branches and member companies of credit institutions.
Techcombank, the largest private bank in the country, said the bond issuance aims to increase its capital adequacy ratio and scale up operations.
Techcombank’s plans follow a large number of banks that have been issuing bonds since earlier this year to increase their capital.
Between January-August, banks issued over VND56 trillion ($2.42 billion) worth of bonds, accounting for half of bond issues, according to stock brokerage Saigon Securities Inc (SSI). 99.6 percent of bank bonds were bought, it added.