Vietinbank international bonds worth US$250 million were issued on May 17th, 2012 and has been listed on SGX since May 18th, 2012 for a 5-year term. This is the first international bond issue of a Vietnamese financial institution.
The 5-year bond term reached maturity date on May 17, 2017 and it has led to Vietinbank's announcement to cancel the listing.
Earlier in January 2010, the Government of Vietnam had also mobilized US$1 billion of international bonds for a 10-year term.
The bond, whose coupon rate is fixed at 8% per annum and is paid every six months, is unsecured and non-convertible. HSBC and Barclay Capital act as the book-runners and dealer managers for this transaction.
Due to the 8.7% increase in the USD/VND rate over the past five years, the interest of bonds in VND that Vietinbank has to pay is about 10% higher than in USD.