Agribank plans to spend 1,140 billion VND to buy back bonds before maturity

Vietnam Bank for Agriculture and Rural Development (Agribank) has just issued a document announcing information about the early bond buyback. Accordingly, the bank has repurchased the bond lot coded VBA12206 (VBACLH2229001).

The repurchase method is to purchase according to the early repurchase right of the Issuer. The expected volume of bonds to be repurchased at par value is 1,140 billion VND. The source of repurchase is from Agribank's business capital and other capital sources according to the regulations of the State Bank. The closing date of the list of bondholders is March 22, 2024, the payment date for repurchase is April 15, 2024.

From March 22, 2024 to April 15, 2024, bond owners are not allowed to transfer, donate, inherit... related to bonds.

According to Agribank, the repurchase plan was approved by the bank's Board of Members in Resolution No. 02 dated January 5, 2024. The organizations participating in the repurchase include the Vietnam Securities Depository and Clearing Corporation (VSDC) and Agribank.

Information on the bond lot purchased by Agribank.

Information from the Hanoi Stock Exchange, bond lot VBACLH2229001 was issued on April 15, 2022, with a term of 7 years, which means it will mature on April 15, 2029. The issuance volume is 11,400 bonds with a par value of VND 100 million/bond. Equivalent to a total issuance value of VND 1,140 billion.

The bond has an interest rate of 6.63%/year. The market for issuance is Vietnam. Agribank has the right to buy back 100% of the issued bond volume 5 years before the maturity date.

Previously, in 2023, Agribank also bought back 2 lots of bonds VBACLH2228002 and VBACLH2228010 before maturity. Specifically, the bond lot VBACLH2228002 has a total issuance value of 3 billion VND, interest rate of 6.28%/year, issued on June 30, 2022 with a term of 6 years, expected to mature on June 30, 2028.

Bond lot VBACLH2228010 with a total issuance value of VND 53 billion, interest rate of 6.6%/year, issued on September 16, 2022, term of 6 years, expected to mature on September 16, 2028.

According to Agribank's periodic information announcement on principal and interest payments, in the first half of 2023, this lender spent more than VND 269 billion to pay bond interest .

Source: https://www.nguoiduatin.vn/agribank-du-chi-1-140-ty-dong-mua-lai-trai-phieu-truoc-han-a653901.html