Viet Nam Commercial Bank for Industry and Trade (VietinBank) will be managing the capital raised from the Government's bond issue in February, according to a deal signed by the bank and the Ministry of Finance this week.
The bank will take responsibility for capital collection, disbursement and refinance of the US$1 billion issuance.
The bonds had a yield of 6.95 per cent at the time of issuance and carry a nominal interest rate of 6.75 per cent. American investors bought 56 per cent of the bonds, Asian investors acquired 28 per cent, while Europeans picked up the remainder.
The bonds will be listed on the Singapore Stock Exchange and due on January 29, 2020.
Pham Huy Hung, VietinBank's chairman, said the bank planned to introduce three new service packages this year aimed at supporting ODA-funded projects. The services include a supporting product for re-lending the Government's foreign loans, managing ODA-funded projects and providing credit for contractors involved in ODA-financed projects.
The Government appointed the HCM City-listed bank to be the major capital manager for a number of projects, including the HCM City-Long Thanh-Dau Giay expressway, which received $410.2 million worth of financing from the Asian Development Bank (ADB); a project to invest in and develop localities with $190 million worth of funding from the World Bank, and a comprehensive socio-economic development project in the northern city of Thanh Hoa, which has received $106.8 million worth of funding from the ADB and the Korean government, among others.
The bank plans to hold a corporate bond issuance this year worth a maximum of VND6 trillion ($315.8 million). The bonds, which will have a two-year term, will have a yield of 12.5 per cent in the first year.
Hung said the bank's management board would make the final decision on the volume of the bonds and their interest rate, as well the time of issuance.