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|The VPBank headquarters in Hanoi|
The bonds, with a nominal coupon rate of 6.25 per cent, have been distributed to Asian and European investors at the volume of 52 and 48 per cent, respectively.
This marks the largest volume and a record-low coupon rate attained by a non-sovereign Vietnamese issuer on the global market.
VPBank's notes are non-convertible, unsecured, and are listed on the Singapore Stock Exchange (SGX). The investors’ bids were triple the issuer’s offered volume.
The privately-held bank shall use the proceeds to improve its financial capacity, enhance operational safety, and supplement funding mix to meet customers’ demands for medium- and long-term loans or other purposes.
|A VPBank transaction office|
Unlike other one-time issuance of other issuers, this was the first trench under the $1 billion Euro Medium Term Note (EMTN) Programme of VPBank that is slated to take place within 12 months.
This also marks VPBank’s footprint in the EMTN international playground and makes it more flexible and proactive in the next trench of international bond issuance in light of market conditions as well as the bank’s needs. Investors highly appreciated VPBank's participation in the programme.
Last year, VPBank reached a revenue of more than VND31 trillion ($1.34 billion), posting 25 per cent year-on-year increase and taking the lead among local private commercial lenders. It also had a record profit of around VND9.2 trillion ($400 million) in 2018.