LPBS plans to invest over $50M in secondary bonds

LPBS plans to invest over $50M in secondary bonds

This strategic move, recently approved by LPBS's Board of Directors, reflects an approach to enhance its portfolio amid evolving market conditions.

A client talks to a bank teller at a transaction office of LPBank. — Photo courtesy of the bank

LPBank Securities JSC (LPBS) has announced its intention to invest up to VNĐ1.4 trillion (US$54.9 million) in secondary bonds issued by Fortune Vietnam Commercial Joint Stock Bank (LPBank).

This strategic move, recently approved by LPBS's Board of Directors, reflects an approach to enhance its portfolio amid evolving market conditions.

The company plans to acquire the LPB7Y202401 bond, which is classified as non-convertible, unsecured and without attached warrants. 

As a secondary debt instrument, it meets the criteria to be counted as Tier 2 capital for LPBank. The bond has a maturity of seven years and can be pledged at LPBank or a third party.

This particular bond offering is part of a broader plan by LPBank to issue a total of VNĐ4 trillion in bonds in 2025, consisting of 40 million bonds with a nominal value of VNĐ100,000 each. 

The first batch of this issuance, scheduled from February 4 to March 5, 2025, will include the LPB7Y202401 bond valued at VNĐ2.9 trillion and another bond, LPB10Y202402, valued at VNĐ100 billion.

Following the first batch, a second issuance will follow, featuring two additional bonds: LPB7Y202403 and LPB10Y202404, with a total value of VNĐ1 trillion. If the first issuance does not sell out, the remaining amount will be carried over to the second tranche.

LPBS has recorded impressive growth in the fiscal year 2024. The company achieved total operating revenue of VNĐ193 billion, a 4.6-fold increase from the previous year.

Its profit before tax surged to VNĐ100 billion, up significantly from VNĐ14 billion in 2023.

This substantial growth can be attributed to a successful capital increase, where LPBS raised its charter capital from VNĐ250 billion to nearly VNĐ4 trillion in April 2024, through the issuance of 363.8 million shares to existing shareholders at a price of VNĐ10,000 per share. 

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