These bonds are non-convertible, non-warranted and non-guaranteed, denominated in Vietnamese Dong, establishing the direct debt repayment obligations, being subordinated debts of the Joint Stock Commercial Bank for Investment and Development of Vietnam, and meeting the current regulations to be calculated in BIDV’s tier 2 capital.

The bond was launched on 30 September 2019, consisting of VND400 billion 7-year bond and VND6 billion 10-year bond. The call option date will be two years from the issue date for the 7-year bond, and five years from the issue date for the 10-year bond.

The interest rates are calculated as follows: the Reference Rate (which is the average of 12-month interest rates for individual savings deposit denominated in Vietnamese Dong with interest paid at maturity of 4 banks including Agribank, Vietinbank, BIDV, and Vietcombank) plus 1.2% p.a. for 7-year bonds and 1.4% p.a. for 10-year bond.

If the issuer does not redeem the bonds on the call option date, the rate of 7-year bond will be the Reference Rate + 3.6% p.a. applicable for the last 2 years of the bond term; and that of 10-year bond will be the Reference Rate + 2.4% p.a. applicable for the last 5 years of the bond term.

The applicable interest rates for the first coupon payment of the 7-year and 10-year bond are 8.1% p.a. and 8.3% p.a., respectively.