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WHOLESALE BANKING | Cesar Tordesillas, Vietnam

VietinBank bonds attract foreign investors

VietinBank became the first Vietnamese financial institution to successfully issue US$250 million worth of bonds in international markets at an annual real coupon of 8.25%.


“On the issuance date, May 10, we sold out the bonds to investors from Asian, European and American markets. The coupon is set at 8% per annum with the maturity due in 2017 and thereal coupon fixed at 8.25% yearly,” said VietinBank deputy general director Le Duc Tho.

Tho said that an international bond sale is a suitable solution for VietinBank to mobilize

capital thanks to moderate borrowing costs. He also sees it as a way for the bank to explore the interest of foreign investors towards the Vietnamese market.

Tho said he believed the first bond issuance would pave the way for his bank and other local enterprises to enter bond markets outside the country. He added that the good performance of his bank’s bond issuance was a positive signal.

VietinBank targets to mobilize up to US$2 billion from foreign markets in the years to  come.

The success of VietinBank’s bond issuance has proved foreign investors are confident of the lender and this will offer more chances for other local companies, according to Sumit Dutta, CEO of HSBC Bank (Vietnam), the consulting agency for the deal.

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