Business
Vietnam’s bank SHB to issue US$500-million international bonds
The scheduled time of the issuance is the fourth quarter of 2019 and in 2020, depending on the market situation and the needs of SHB, while the bonds are set to be listed on Singapore Stock Exchange.
Saigon – Hanoi Commercial Joint Stock Bank (SHB) has proposed plan to the lender’s shareholders of issuing bonds worth US$500 million in international markets, aiming to raise capital and alleviate the dependence on domestic sources of foreign currency, stated the bank.
Following the plan, SHB is scheduled to issue US$300 million worth of senior bonds, which are non-convertible bond, unsecured and without warrants, and tier-2 bonds (10-year maturity not callable for 5 years or 10NC5) with value of US$200 million, which are open for buy-back after 5 years and 1 day, unsecured and with warrants, non-convertible.
Par value of bond is stipulated at US$1,000 or multiples of US$1,000, or other denomination which is determined in accordance with customs of international bond markets and regulations of the scheduled foreign stock exchange.
Additionally, SHB stated the coupon rate is fixed rate or floating rate or combination of both types of rates. For the senior bond, the maturity period would be from three to five years, and tier-2 bond of 10 years.
The scheduled time of the issuance is the fourth quarter of 2019 and in 2020, depending on the market situation and the needs of SHB, while the bonds are set to be listed on Singapore Stock Exchange.
SHB plans to use proceeds raised from issuing bond to continue to grow loan, under which SHB will use foreign currency funds for short-term foreign currency loans, as well as payment of principal and interest, stated the bank.
The bank’s total assets by the end of 2018 reached VND323.27 trillion (US$13.91 billion), up 13% year-on-year and profit after tax of VND1.67 trillion (US$71.87 million), up 9% year-on-year, according to SHB’s consolidated financial statement.
In the first quarter of 2019, the bank recorded profit after tax of VND1.24 trillion (US$53.36 million).
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Par value of bond is stipulated at US$1,000 or multiples of US$1,000, or other denomination which is determined in accordance with customs of international bond markets and regulations of the scheduled foreign stock exchange.
Additionally, SHB stated the coupon rate is fixed rate or floating rate or combination of both types of rates. For the senior bond, the maturity period would be from three to five years, and tier-2 bond of 10 years.
The scheduled time of the issuance is the fourth quarter of 2019 and in 2020, depending on the market situation and the needs of SHB, while the bonds are set to be listed on Singapore Stock Exchange.
SHB plans to use proceeds raised from issuing bond to continue to grow loan, under which SHB will use foreign currency funds for short-term foreign currency loans, as well as payment of principal and interest, stated the bank.
The bank’s total assets by the end of 2018 reached VND323.27 trillion (US$13.91 billion), up 13% year-on-year and profit after tax of VND1.67 trillion (US$71.87 million), up 9% year-on-year, according to SHB’s consolidated financial statement.
In the first quarter of 2019, the bank recorded profit after tax of VND1.24 trillion (US$53.36 million).
