VietinBank buys back 2,000 billion VND worth of bonds before maturity

Vietnam Joint Stock Commercial Bank for Industry and Trade ( VietinBank - HoSE: CTG) has just announced information on the results of the buyback of 3 bond codes CTGL2129012, CTGL2129013 and CTGL2129014.

Accordingly, the bank has repurchased the above 3 bond lots with a total value of 2,000 billion VND. Of which, bond lots CTGL2129012 and CTGL2129013 have a face value of 700 billion VND, bond lot CTGL2129014 has a face value of 600 billion VND.

The above 3 bonds were all issued in September 2021, with a term of 8 years and are expected to mature in 2029.

Information on VietinBank bonds bought back before maturity.

Since the beginning of the year, the bank has repurchased a total of 7 bond lots with a total value of 4,420 billion VND. Of which, the bond lot with the largest face value repurchased is CTGH2129001, which was repurchased in May with a value of 1,500 billion VND. The bond lot was issued in May 2021, with a term of 8 years.

In August 2024, the bank also bought back VND 820 billion worth of bonds coded CTG1929T2/RL (VND 100 billion) and CTGL2129008 (VND 720 billion).

On the other hand, this year, VietinBank plans to issue two bonds to the public with a total of 80 million bonds. Each bond has a face value of 100,000 VND. The total value of the two bond issuances is equivalent to 8,000 billion VND.

In both issuances, the bank plans to mobilize two bond codes: XTG2432T2 with a value of VND 3,000 billion, 8-year term and bond code CTG2343T2 with a value of VND 1,000 billion, 10-year term.

All of the above bonds are non-convertible, without warrants, without collateral and satisfy the conditions to be included in VietinBank's tier 2 capital according to current legal regulations.

The interest rate for 8-year bonds will be equal to the reference rate plus 1.05%/year and the interest rate for 10-year bonds will be equal to the reference rate plus 1.15%/year.

The proceeds from the public bond offering in 2024, after deducting related fees and costs, are expected to be used by VietinBank to increase its working capital scale, increase Tier 2 capital and ensure operational safety ratios according to regulations of the State Bank.

At the same time, the economic lending for the gas production and distribution sector is 4,000 billion VND, 2,000 billion VND for the processing and manufacturing industry and 2,000 billion VND for other sectors (2,000 billion VND). The expected disbursement time is the third quarter of 2024 - the second quarter of 2025.

Source: https://www.nguoiduatin.vn/vietinbank-mua-lai-truoc-han-2000-ty-dong-trai-phieu-204240917111929942.htm