Three-year bonds in denominations of VND1 billion issued on September 27.
The Vietnam International Commercial Joint Stock Bank (VIB) has announced the result of Phase 1 of its bond issuance in 2018.
It issued 2,800 non-convertible bonds on September 27, secured by assets and not accompanied by warrant. The bonds have a term of three years and are in denominations of VND1 billion ($42,875).
The bank collected VND2.8 trillion ($119.9 million) from the issuance.
VIB has been a preferred bank in issuing bonds to increase secondary funds in recent times. It also issued VND1.1 trillion ($47.1 million) in long-term bonds last year.
Issuing bonds to increase capital is a solution chosen by many banks, raising capital to improve their minimum capital adequacy ratio (CAR).
It also helps balance the capital maturity structure, especially when the regulation on short-term capital ratios for medium and long-term loans will be cut to 45 per cent from January 1.
VIB’s total assets reached VND127.29 trillion ($5.4 billion) as at June 30, up 3.4 per cent from the beginning of the year. Loans to customers increased 9.3 per cent and deposits 10.2 per cent. Pre-tax profit in the first half of this year was three-fold higher year-on-year and reached VND1.1 trillion ($47.1 million), fulfilling 57 per cent of the annual plan. After-tax profit was VND921 billion ($39.4 million).
VIB was founded on September 18, 1996, with a head office at 16 Phan Chu Trinh, Hoan Kiem district, Hanoi.
As at December 31, 2017, VIB had become one of the leading commercial joint stock banks in Vietnam, with total assets of VND123.2 trillion ($5.2 billion). Charter capital is now VND5.6 trillion ($240.1 million) while shareholder equity is nearly VND9 trillion ($385.6 million). It has more than 5,000 people working at 162 branches and transaction offices in 27 key cities and provinces around Vietnam, serving almost 2 million customers.
Mi Van report on Vneconomictimes