BAC A BANK issues 15 million bonds to meet year-end market demand
From October 7, 2024, BAC A BANK officially offered 15 million bonds in the second public offering - phase 2, with a total offering value of VND 1,500 billion.
This bond offering aims to increase safe and profitable investment opportunities for customers as well as meet the demand of the gradually warming bond market.
Bond market to be vibrant by the end of 2024
According to the forecast of MB Securities Joint Stock Company (MBS Research), corporate bond issuance activities will be more active in the fourth quarter of 2024 when capital demand of enterprises recovers, the real estate market begins to flourish, and the need to expand production and business is actively following the economic recovery.
According to data compiled by the Vietnam Bond Market Association (VBMA), in August (as of August 23, 2024), there were 24 corporate bond issuances recorded, with a total value of VND 33,391 billion. Accumulated from the beginning of the year until now, the total value of corporate bond issuance reached VND 222,752 billion, with 13 public issuances worth VND 22,773 billion (accounting for 10.2%) and 206 private issuances worth VND 199,979 billion (accounting for 89.8%).
In terms of issuance structure by industry, commercial banks dominate the primary market, accounting for 87% of the total issuance value - according to FiinRatings.
For individual investors, the signs of market recovery are a signal of many opportunities to expand investment channels, in which bonds are a safe and long-term choice. But what is a safe bond?
“In fact, there is no such thing as a completely safe bond, only a low-risk bond. A low-risk bond is a bond of a business with a good credit rating. This credit rating not only reflects the stable financial situation of the business but also demonstrates the ability to withstand risks from the macro environment, industry risks and internal factors of the business”, Ms. Nguyen Thu Binh - Acting Director of Risk Management and Head of Risk Management Department; PVI Fund Management Joint Stock Company shared in the article Risk Management of Corporate Bonds.
Companies with good credit ratings often have a solid financial structure, effective risk management strategies and the ability to respond flexibly to market fluctuations. This helps to minimize the possibility of default, creating peace of mind for investors when holding their bonds.
Ms. Nguyen Thu Binh - Acting Director of Risk Management and Head of Risk Management Department; PVI Fund Management Joint Stock Company.
BAC A BANK continues to offer 15 million bonds to the public
From October 7, 2024, Bac A Commercial Joint Stock Bank (BAC A BANK) officially offered 15 million bonds for the second public issuance - phase 2, with a total offering value of VND 1,500 billion.
The second public issuance of the Bac A Commercial Joint Stock Bank Bonds - Phase 2 applies a higher interest rate than the normal 12-month personal deposit interest rate, with a maximum margin of up to 1.9%/year; individual investors as well as organizations can easily own an investment amount of only 50,000,000 VND and 100,000,000 VND respectively.
In this issuance, BAC A BANK Bonds have a face value of 100,000 VND/bond; interest is paid periodically every 12 months; including 2 terms of 7 years and 8 years. The expected time to buy back the bonds is only after 18 months, 24 months and 36 months from the date of issuance, corresponding to each bond symbol.
Similar to previous issuances, this batch of bonds of BAC A BANK continues to be non-convertible, unwarranted, and unsecured. The product is distributed directly at the head office and the BAC A BANK branch/transaction office system nationwide, making it easy to participate.
At the end of the offering on October 28, 2024, BAC A BANK's bonds will be centrally registered at the Vietnam Securities Depository and Clearing Corporation (VSDC) and listed on the Hanoi Stock Exchange (HNX), in compliance with the Government's orientation for developing a healthy and transparent bond market.
Accordingly, investors can proactively trade and mortgage bonds with super competitive interest rates, creating conditions for customers to proactively finance if sudden capital needs arise and fully exercise the rights of bond owners including transferring, donating, mortgaging, etc.
The attraction of a long-term, profitable investment channel
In early April 2024, FiinRatings - a member of FiinGroup and a partner of S&P Global Ratings in Vietnam, rated BAC A BANK's Long-Term Issuer Credit Rating at 'A-' with a "Stable" Rating Outlook.
The first point is that BAC A BANK's Risk Position is assessed at "Very Good", reflected in clearly defined and consistent risk management, combined with a consistent risk appetite aimed at both individual and corporate customers with low risk levels. BAC A BANK's experience and history of asset quality management are also always good and more cautious than the industry average, along with a potential risk level assessed lower than the industry thanks to a relatively simple business model and focus on lending.
In fact, through previous issuances, BAC A BANK bonds have always been trusted and chosen by investors thanks to their high liquidity and ease of trading. The bank also fully performed its obligations to pay periodic bond interest and buy back bonds before maturity as committed.
With capital added to Tier 2 capital through previous bond issuances, BAC A BANK continues to affirm its stable financial health, timely supply of capital to the economy, ensuring safety ratios in operations and growth targets approved by the State Bank of Vietnam.
“With the orientation of lending to sectors encouraged by the government, with low risk and volatility such as high-tech agriculture and social security, it has helped strengthen BAC A BANK's risk position in nearly 30 years of development. The bank has been maintaining a stable loan portfolio with more than half of the portfolio structure coming from essential sectors that are less affected by market factors such as agriculture, forestry, fishery, processing technology, manufacturing... BAC A BANK especially focuses on providing credit to large enterprises with good credit quality and within the typical lending value chain of BAC A BANK", said Mr. Chu Nguyen Binh - Deputy General Director of Bac A Commercial Joint Stock Bank.
In addition, BAC A BANK always accompanies and provides investment advice to customers in this industry, so it has a comprehensive understanding of the operating situation, business prospects as well as closely monitors customers' cash flow.
For more information, please visit our website.www.baca-bank.vn, contact Customer Care Center 1800 588 828 (free) or receive direct consultation at the nearest BAC A BANK branches/transaction offices.
