Vietnam bank bond coupons climb above 9%, with one tranche at 10.5%

Vietnamese banks have raised money through bonds offering annual coupons above 9%, including a PVcomBank tranche paying 10.5%, according to disclosures compiled from the Hanoi Stock Exchange. Several lenders increased their rates across the three-month period covered by the data.

PVcomBank’s 10.5% tranche raised ₫200 billion. The 10-year bonds were issued on September 17 and are due on September 17, 2036. Other September and October tranches brought in a combined ₫4.08 trillion at 9.6%. Most of its bonds issued during those months had floating coupons and terms ranging from seven to 10 years.

Sacombank raised ₫7.83 trillion during September and October with coupons of 9.4-9.5%. It had previously issued three batches totalling ₫4.23 trillion with six-year terms and a fixed 10% coupon. Nam A Bank raised ₫495 billion at 9.7% through NABL12607 and another ₫100 billion at 9.6% through NABL12606.

LPBank obtained ₫600 billion from four packages paying 9.68% in late September and early October, while a separate ₫1.5 trillion tranche carried a 9.2% coupon. HDBank’s rate rose to 9.2% from 8.9%, and Asia Commercial Bank’s increased to 8.5% from 8%. MBBank offered 9-9.2% in September, compared with 8.1% in July.

S&I Ratings reported an average bank bond coupon of 8.85% for the third quarter, compared with 8.5% during the first half and the previous 2022 peak of 8.7%. Rates differed among lenders: Vietcombank maintained coupons around 8%, while BIDV’s stood at 8-8.2%.