SSI issued 200 billion VND (nearly 8.9 million USD) worth of two-year non-convertible bonds with an annual yield rate of 7 percent for the first 12 months (Photo: ndh.vn)

Hanoi (VNA) – The Sai Gon Securities Inc (SSI) on August 5 issued 200 billion VND (nearly 8.9 million USD ) worth of two-year non-convertible bonds with an annual yield rate of 7 percent for the first 12 months.

In the second year, the yield rate will level the average deposit rate of 12-month VND-based accounts at Vietcombank, Vietinbank and BIDV with a margin of 1.2 percent on either side and be adjusted every three months.

This was SSI’s first bond issuance of this year and the bond yield rate was also the lowest ever. In 2015, the brokerage firm issued 800 billion VND worth of bonds.

SSI said that the fund mobilised from the bond issuance would be used to increase the firm’s working capital and strengthen the firm’s top position in all business sectors.

SSI said that the bonds were issued successfully as the bond market showed a high amount of available capital and the lending growth rate remained low.

During the first half of the year, the banking sector recorded a lending growth rate of 8.16 percent, lower than deposit growth rate in the sector of 8.23 percent.

The difference between lending and deposit growth rates has helped increase the liquidity among all banks and reduce the interbank overnight lending rate.

SSI also said that the scale of the bond issuance was small and short, thus the company was able to mobilise the capital with a low yield rate.

In addition, investors were professional and highly reputable finance institutes in Vietnam and they were able to evaluate precisely SSI’s financial status and credit rating.

SSI is now among three leading brokerage firms in Vietnam. At the end of June, the company’s chartered capital reached 4.8 trillion VND.

SSI has recently reported a total pre-tax profit of 508.86 billion VND, equal to 53.5 percent of the expected result for this year.-VNA