VietinBank is allowed to repurchase bonds issued in 2019 and is responsible for using the capital collected from the bond issuance for the right purpose. (Photo: cafef.vn)

Hanoi (VNA) - The State Bank of Vietnam has approved the plan submitted by the Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) to issue bonds worth 10 trillion VND (427.4 million USD).

Bond interest rates will be decided by VietinBank but must be consistent with the law, ensuring business efficiency and banking safety.

Bond buyers will include Vietnamese and international organisations and individuals.

VietinBank will be allowed to repurchase bonds issued in 2019 and will be responsible for using the capital raised from the bond issuance for the right purposes.

Over the past year, VietinBank has issued bonds to maintain and raise its capital adequacy ratio (CAR), which is currently at the minimum level prescribed by law.

By the end of the first quarter, VietinBank's valuable papers totalled 46.2 trillion VND (1.97 billion USD), equivalent to the beginning of the year, of which 32.2 trillion VND (1.37 billion USD) was in bonds. The remainder was mainly certificates of deposit worth 14 trillion VND (598.36 million USD).-VNA