HCMC – HSBC Bank (Vietnam) Ltd. has become the first ever foreign commercial bank to issue bonds in Vietnam, releasing six million bonds on August 10, 2020.
At a par value of VND100,000, HSBC Vietnam’s Lotus bond, named after Vietnam’s national flower, comes with a fixed coupon rate of 5.8% and a tenor of three years. With an order book oversubscribed by investors, the bond sale is a testament to the bank’s strong brand in Vietnam’s market.
“As we celebrate the 150th anniversary of HSBC’s arrival in Vietnam, this milestone issuance underscores our long-term commitment to this remarkable country,” Tim Evans, CEO of HSBC Vietnam, said in a statement.
“We wish to play a leading role in the ongoing development of the Vietnamese corporate sector together with Vietnam’s capital market long into the future. We plan to become a regular issuer as we look to position our franchise to continue to be the leading foreign bank in the market.”
He added that the proceeds from the issuance would increase HSBC’s operating capital and diversify Vietnam dong currency funding sources in order to further accelerate the bank’s business growth in Vietnam sustainably.
HSBC has a track record of supporting the development of Vietnam’s capital market through its active participation in the fixed income area.
By October 2009, HSBC had raised VND8,412 billion in the VND bond market, including bonds for Vietnam Electricity Group, the Vietnam Technological and Commercial Joint Stock Bank and the Bank for Investment and Development of Vietnam.
In May 2012, HSBC acted as a joint bookrunner and lead manager for Vietnam Joint Stock Commercial Bank for Industry and Trade’s first ever US$250 million international bond offering by a Vietnamese financial institution.
In 2014, HSBC Vietnam also successfully helped the Government of Vietnam in its offering of new 10-year US dollar-denominated global bonds with a value of US$1 billion when the bank acted as a joint bookrunner and dealer manager.
By Minh Tam