BIDV seeks bond issue consultants

Transactions are conducted at a BIDV branch in Ha Noi. — VNA/VNS Photo Pham Hau

Last month, international credit rating agency Standard & Poor's lifted BIDV's outlook from negative to stable and its bonds continued to be rated B+.

Rival Vietinbank successfully issued US$250 million worth of international bonds in May with a coupon rate of 8 per cent per year. The five-year bonds are now listed on the Singapore Stock Exchange. HSBC and Barclays Capital were consultants for the issue.

Vietcombank also has a plan to sell $1 billion in international bonds this year, while Sacombank plans a $200 million issue. This moves are aimed at raising capital in the context of the central bank's move to impose a cap of US dollar deposit interest rate at 2 per cent per year. The State Bank of Viet Nam reported that by the end of last month, dong deposits at the nation's commercial banks had risen by 8.6 per cent over the previous year, but foreign currency deposits had fallen by 2.2 per cent.