Illustrative image (Source: VNA) Hanoi (VNS/VNA) – Local banks have continued issuing a large amount of bonds to raise capital to meet the State Bank of Vietnam (SBV)'s stricter regulations on credit safety limits and capital adequacy. Last week alone saw the Asia Commercial Joint Stock Bank (ACB) and the Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) announce bond issue plans worth up to 15.5 trillion VND (665 million USD). ACB's board of directors approved a plan to issue two-year and three-year bonds worth 5.5 trillion VND, with a maximum interest rate of 6.75 percent. ACB said the money raised from this issuance would be used to increase the bank's working capital to satisfy rising credit demand. In April, ACB also approved the first private placement in 2019 with total face value of 2.5 trillion VND. According to the audited financial statement, by the end of March, the bond value issued by ACB was more than 7.96 trillion VND. Meanwhile, VietinBank last week also received the SBV's approval to issue 10 trillion VND worth of bonds. Over the past year, VietinBank has issued bonds to maintain and raise its capital adequacy ratio (CAR), which is currently at the minimum… Read full this story
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