Agribank to issue $215m worth of bonds

 

Agribank is a 100 per cent State-owned bank with a special mission in supporting and developing Việt Nam's agricultural and rural areas. — Photo vietnamfinance.vn

HÀ NỘI — The Vietnam Bank for Agriculture and Rural Development (Agribank) will issue five million bonds to the public, with a total value of VNĐ5 trillion (US$215 million).

The bonds will have a face value of VNĐ1 million and tenor of seven years.

The bonds' interest rate will be 1.2 per cent per year higher than the average of 12-month savings deposit interest rates at four commercial banks: Agribank, Vietinbank, BIDV and Vietcombank.

Based on the current interest rates, the rate may reach 8.1 per cent for the first year.

According to Agribank’s representative, the purpose of this bond issuance is to increase long-term capital to meet the demand for loans of the economy, especially serving the needs of agriculture and rural development, small- and medium- sized enterprises.

At the same time, it aims to increase Tier 2 capital to ensure safety ratios and increase attractive and effective investment opportunities for customers.

Agribank is a 100 per cent State-owned bank with a special mission in supporting and developing Việt Nam's agricultural and rural areas.

The lender's pre-tax profit is expected to reach a minimum of VNĐ10 trillion in 2019, a year-on-year increase of 32.9 per cent.

In its development strategy, Agribank is striving to become one of the 150 banks with the largest asset scale in Asia by the end of 2020. — VNS