For 2017, SSI plans a consolidated revenue target of 2.108 trillion VND and consolidated profit before tax of 1.058 trillion VND. (Photo: f319.com )

Hanoi (VNA) - Saigon Securities Incorporation (SSI) has decided to issue bonds worth 300 billion VND (13.3 million USD) to financial and credit institutions.

The company will issue 600 two-year bonds at a par value of 500 million VND each. This is a type of non-convertible bond with secured property and priority payment as other secured debts, issued and paid in VNĐ, and issued in the form of book entries.

The interest rate is calculated on the basis of one-year interests for individual customers of five banks – Vietcombank, Vietinbank, BIDV, Agribank and VIB – plus amplitude. The amplitude in the first 12 months is 1 percent annually; and from the 13th to the 24th month it is 1.2 percent. Bonds will be paid only once, at the time of maturity of the bonds; bond interest will be paid once a year.

The 300 billion VND mobilised capital is expected to be used for underwriting, investing in listed bonds, and increasing the capital for SSI’s activities, but excludes other investments and stock trading.

This is the second time in 2017 that SSI has issued bonds, increasing the total value of bonds issued after both sessions to 600 billion VND.

In January, SSI had issued bonds worth of 300 billion VND to individuals and non-financial investors for diversifying mobilised funds and raising medium-term capital in its capital structure.

At its annual shareholders’ meeting on April 21, SSI reported that the company’s business earnings for 2016 reached 2.312 trillion VND, exceeding 60 percent of the target and up 28 percent against 2015. Its pre-tax profit was 1.056 trillion VND, 11.24 percent higher than the target.

For 2017, SSI plans a consolidated revenue target of 2.108 trillion VND and consolidated profit before tax of 1.058 trillion VND.-VNA