LienVietPostBank will offer 19.5 million bonds with a face value of VND100,000 ($4.25) per bond to the public for the proceeds totaling VND1,950 billion, or $82.72 million.
The issuance runs between December 10 and December 30 with two terms - seven years and 10 years. They are non-convertible, unwarranted, and unsecured bonds.
The bonds bear a floating coupon rate from 10.2%-10.5% per year. It is based on the average interest rate for personal savings deposits in Vietnamese dong for two months offered by Vietinbank, Agribank, Vietcombank, and BIDV at the date of coupon rate determination, plus margins. The 7-year bonds will enjoy a margin of 2.8% per year, while the 10-year bonds will get a margin of 3.1% per year.
Investors can register to buy the LienVietPostBank bonds at branches nationwide and through the issuing agent Saigon-Hanoi Securities JSC. The minimum quantity for individual investors is 200 bonds, and for institutional investors, 10,000.
LienVietPostBank will use the proceeds from the first public bond issuance in 2022 to increase the bank's operating capital and provide loans to customers in the first quarter of 2023.
Earlier this month, the bank appointed Nguyen Duc Thuy as chairman, effective on December 12, replacing Huynh Ngoc Huy who had resigned for personal reasons.
With more than 1,000 transaction points nationwide, LienVietPostBank is one of the banks with the largest network in the country.
In the first nine months of 2022, the bank's pre-tax profit reached more than VND4,800 billion ($193 million), up 72% year-on-year; after-tax profit hit more than VND3,842 billion ($154.6 million). Of this, net profits from service activities reached VND779 billion ($31.35 million), up 43% year-on-year.
In 2022, the bank targeted pre-tax profit at VND4,800 billion ($193.2 million), a 32% rise compared to 2021. Therefore, after only the first nine months of the year, LienVietPostBank has completed its profit target for the whole year.
By September 30, 2022, the bank's total assets exceeded VND313 trillion ($12.6 billion), an increase of 8.5% compared to the beginning of the year. Outstanding loans to customers reached nearly VND228 trillion ($9.18 billion), while customer deposits hit more than VND193 trillion ($7.77 billion).
Its non-performing loans ratio decreased from 1.39% at the end of June 2022 to 1.32% at the end of September.