Techcombank issues bonds equal to $123 mln

Techcombank said Monday that it had raised VND2.1 trillion (more than US$123 million) by issuing three-year bonds on Oct. 22, and the proceeds would be added into its working capital.

The face value, as ruled, is VND100,000.

The bonds, which will be due on Oct. 22, 2012, carry a coupon of 10.5 percent for the first year. The coupon on the remaining two years is floating, equal to the average rate on 12-month savings paid by four state-run banks (Agribank, Vietcombank, VietinBank and Bank for Investment and Development of Vietnam) plus 2.8 percentage points.

Techcombank said if the floating rate is higher than the State Bank of Vietnam’s ceiling rate, the ceiling level will be applied.

Techcombank, with 20 percent of capital owned by British banking group HSBC, plans to raise its registered capital to VND5.68 trillion dong by the year of this year from a current VND5.4 trillion.

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Vietnam to chair ASEAN Bankers Association

The Chairman of VietinBank and the President of the Vietnam Banks Association Pham Huy Hung will assume the presidency of the ASEAN Bankers Association (ABA) for the 2010-2011 term in Cambodia in mid-November.

Pham Huy Hung (Photo: vietinbank.vn)

This is an important landmark, confirming the Vietnamese banking sector’s prestige amongst regional countries and establishing a cooperative relationship amongst other ABA countries.

It will also be a big honor for Vietnam’s Joint Stock Commercial Bank for Industry and Trade (VietinBank), confirming the bank’s standing in the sector and its efforts to manage, plus increasing the transparency of its business and investment operations in a bid to become a strong banking and financial group throughout the region by 2015, Mr. Hung said.

The ABA will organize seminars and talks to assess opportunities in the regional banking sector after the economic crisis, enhance cooperation with other regional members and set up a multilateral relationship with leading ASEAN banks.

The association will also form sub-committees to research ways of cooperating and put forward solutions to overcome difficulties in each country’s banking associations as well as share their experiences and training programs within the framework of regional financial institutions.

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Citigroup opens first retail banking branch in Vietnam

Citigroup Inc. on Oct 13 opened its first retail banking branch in Vietnam, becoming the first US financial institution with retail operations in the country.

The new branch, located in Ho Chi Minh City, will provide deposit services to individual clients and remittance services to those with relatives studying and living abroad, especially in the US.

Available at the branch are also counter teller services and two 24-hour ATMs, which bring to five the number of Citibank ATMs in the city. By the end of the year, a further eight ATMs will be deployed.

Citibank becomes the fourth foreign bank with retail operations in Vietnam after HSBC Holdings PLC, Australia and New Zealand Banking Group Ltd. (ANZ) and Standard Chartered PLC.

“We believe in Vietnam’s future and are committed to continuing to invest here and actively participate in Vietnam’s economic growth,” Shirish Apte, Chief Executive of Citi Asia Pacific, said in a statement.

Meanwhile, Brett Krause, Citibank country officer for Vietnam, said: “With our first retail outlet, we are also introducing Citis wealth management offering – Citigold – to Vietnamese consumers.”

Citigroup started operations in Vietnam in 1993. The new branch will be Citigroup’s third in the country, after wholesale branches in Hanoi and Ho Chi Minh City, the bank said.

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Japan, ADB help Vietnam diversify microfinance services

The Japan Fund for Poverty Reduction is extending a US$1.5 million grant to help the Vietnamese Government formalize the country’s microfinance sector, the Asian Development Bank (ADB) announced Oct. 6.

A statement ADB released from Manila, where the bank is headquartered, said five microfinance programs would be helped to develop the capacity to join the formal sector.

The extension of the grant also aims to boost services and provide increased financial support for the poor, ADB said.

“The Government [of Vietnam] recognizes microfinance as a potentially important means for poverty reduction, especially in rural areas, and is seeking to develop a robust sector with diversified, formal microfinance sources and strong private sector participation that can offer sustainable and affordable financial services to the poor,” Binh Nguyen, finance specialist (rural and microfinance) in ADB’s Southeast Asia Department, said in the announcement.

The Vietnamese Government will provide counterpart funds equivalent to around US$150,000 with participating microfinance institutions supplying matching funds $800,000 equivalent, making the Japan Fund for Poverty Reduction total cost of US$2.45 million, according to ADB.

The Japan Fund for Poverty Reduction is financed by the Japanese Government and administered by the bank.

Source: SGGP