Vietinbank successfully issues bonds at low interest rate

Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank) announced it successfully issued non-convertible five-year bonds worth VNĐ2 trillion (US$88.1 million) at annual interest rate of 5.8 per cent.

Compared with the interest rates of other bond issued recently, the 5.8 per cent rate is considered the lowest rate. It is even lower than the interest rate of 7 per cent per year applicable for deposits of over three years in Vietinbank.

Previously, in December 2016, Vietinbank also issued 10-year bonds worth VNĐ2.9 trillion at interest rate of 7.5 per cent in the first five years.

Vietinbank reported a high profit of VNĐ8.25 trillion in 2016, 4 per cent higher than the target set at the bank’s general meeting of shareholders.

As of December 31, 2016, the bank’s total merged assets were estimated at VNĐ947 trillion, up 22 per cent from the previous year.

Also in 2016, the bank’s total outstanding loans were VNĐ720 trillion, a year-on-year rise of 18 per cent, while total mobilised capital reached VNĐ862 trillion, up 21 per cent. By the end of 2016, the bank continued to effectively manage the quality of assets with bad debt ratio of less than 1 per cent.

The bank in 2017 has set a target of a 15-17 per cent rise in total assets and an 18 per cent increase in outstanding credit.