BAC A BANK bond issuance to increase operational scale

August 29, 2023 | 13:00
(0) user say
BAC A BANK will issue bonds for the third time as part of it plan to increase operations.

On October 16, the lender is scheduled to issue more than 33.44 million bonds worth about $141.1 million, meaning VND100,000 ($4.22) per bond, under the consultancy by ACB Securities Co., Ltd. based in Ho Chi Minh City.

BAC A BANK bond issuance to increase operational scale
BAC A BANK currently has charter capital of over $340 million

The bond categories will include BAB202203-07L and BAB202203-07C both for a seven-year tenure, and BAB202203-08C for an eight-year tenure.

Such issuance is aimed to increase the scale of BAC A BANK’s operations, offer loans to customers, and ensure the lender’s operation safety in accordance with regulations set by the State Bank of Vietnam.

Bondholder benefits will include a diversification of their investment portfolio in addition to their regular deposits or deposit certificates. They will also be able to enjoy interest rates which are more attractive than those of savings products. Besides that, they can also flexibly use capital when they have a sudden financial need.

Investors are additionally entitled to exercise the rights of bondholders, including transferring, donating, mortgaging bonds, or changing information on the bond ownership certificates.

Customers can register and buy the bonds from September 25 to October 16 at the bank’s headquarters on Quang Trung road in Vinh city of the central Nghe An province, as well as at the bank’s branches or transaction offices nationwide.

Individual investors can register to buy a minimum of 500 bonds or multiples of 500 bonds, while institutional investors can do the same with 1,000 bonds or multiples of 1,000.

Customers must open a transaction account in VND at BAC A BANK to pay for any bond purchase. They shall also have to allow the bank to temporarily lock and unlock the money used to register to buy bonds on the account, and transfer to an account as specified by the bank no later than 9am of the bond issuance date in order to complete the transaction of bond purchase registration.

After the end of the issuance, the bonds will be registered at the Vietnam Securities Depository (VSD), and also be listed on the Hanoi Stock Exchange.

Regarding bond interest and principal payment, interest and principal of bonds shall be paid into the transaction account registered by customers if the bondholder has yet to deposit the bonds at the VSD. They shall also be paid via the VSD if the bondholder has deposited the bonds at the VSD.

Individual investors will be subject to a 5 per cent individual income tax from capital investment, and a 0.1 per cent from bond transfer based on the transfer price each time.

Meanwhile, institutional investors shall have to declare and pay corporate income tax on the basis of declaring revenue and expenses in accordance with the existing law.

BAC A BANK has focused this year on pioneering investment consultancy for clean agricultural projects abroad, as well as green credit services. It is also perfecting its digital banking model with the goal of digitalisation throughout the customer experience journey, effectively approaching the market to optimise its resources in operations.

Established in 1994 in Nghe An province, BAC A BANK has expanded its operation network to a total of 168 transaction points including one head office, 52 branches, and 115 transaction offices in 39 provinces and cities throughout the country - with a staff of more than 3,000 people.

As one of the first joint-stock commercial banks in Vietnam, the charter capital of BAC A BANK is now about $343 million. With many products meeting all types of needs, the bank provides a complete and comprehensive range of financial and banking products and services for individual and corporate customers. Such services include accounts, domestic/foreign payments, deposit and savings, credit and loans, cards and e-banking, payment guarantee and trade finance, foreign exchange, and insurance.

BAC A BANK supports next generation BAC A BANK supports next generation

With the new 2023-2024 school year here, many banks have launched individual credit packages for education and training purposes, with BAC A BANK exclusively offering attractive products and programmes to parents and students of the TH School system.

BAC A BANK wins Priority Services of the Year award BAC A BANK wins Priority Services of the Year award

Bac A Commercial Joint-Stock Bank (BAC A BANK) has been presented with the Priority Services of the Year Award at VIR’s 2023 Vietnam Wealth Advisor Summit (VWAS).

By Thanh Dat

What the stars mean:

★ Poor ★ ★ Promising ★★★ Good ★★★★ Very good ★★★★★ Exceptional