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Tuesday, May 24, 2022

VietinBank to raise VND15 trillion from bond issues

The Saigon Times

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HCMC – VietinBank (CTG) will conduct 20 bond issues this year to raise VND15 trillion to fund its operation, improve its capital adequacy ratio (CAR) and make loans.

The bank’s board of directors has issued a resolution approving a secondary bond sale plan for this year.

The non-convertible bonds will come with neither warrants nor mortgages.

As of the end of last year, VietinBank’s CAR was 9.14%, one of the lowest rates in the banking sector. The forthcoming fund raising is needed to improve the CAR, thus improving the bank’s credit growth.

This year, VietinBank has set an asset growth target of 5%-10%. It also looks to a pre-tax profit growth rate of 15% at nearly VND19.4 trillion, which can be adjusted by the State Bank of Vietnam.

After providing capital for funds, the remaining VND9.6 trillion will be used to pay dividends. VietinBank’s charter capital is expected to increase to nearly VND57.7 trillion by the end of this year.

However, the bank’s 2021 profit distribution plan will be decided by the competent agencies.

In 2021, the bank raised its charter capital from some VND37.2 trillion to over VND48 trillion by paying dividends in shares, using the after-tax profit in 2020.

At its upcoming shareholders’ meeting, VietinBank will seek its shareholders’ approval for the listing of bonds issued in 2022 on the Hanoi Stock Exchange.

The bank has publicized the use plan of over VND6.5 trillion earned from its bond issues. Accordingly, nearly VND4.8 trillion has been lent to enterprises and individuals in the electricity and gas production and distribution sector, nearly VND1.5 trillion to those in the manufacturing and processing sector and VND250 billion to mining ones.

Today, April 14, CTG lost 0.95% at VND31,200.

The benchmark VN-Index of the HCMC exchange dropped 5.08 points, or 0.34%, at 1,472.12 points. More than 523.36 million shares worth VND18.5 trillion were traded on the southern bourse, down 22% in volume and 16% in value over the session earlier. Of the total, over 24.4 million shares valued at nearly VND1.3 trillion were traded in block deals.

Meanwhile, the HNX-Index of the Hanoi Stock Exchange fell 3.76 points, or 0.88%, at 423.69 points. The bourse saw more than 56.2 million shares worth around VND1.7 trillion change hands.

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