F88 Launches First-Ever Public Bond Offering with 10% Annual Interest Rate

F88 Secures Approval for Public Bond Issuance, Offering Attractive 10% Annual Interest Rate

F88 has received approval from the Securities Commission to issue 10 million public bonds with a face value of VND 100,000 per bond, totaling a maximum capital raise of VND 1 trillion. The issuance is divided into three phases, scheduled for 2026. The first phase, valued at VND 300 billion, is set to commence on January 10, 2026. The second phase, also worth VND 300 billion, is expected to be offered between Q1 and Q2 of 2026. The final phase, valued at VND 400 billion, will be issued from Q2 to Q4 of 2026. Each phase has a maximum execution period of 90 days, with intervals between phases not exceeding 12 months, in compliance with Securities Commission regulations. The bonds have a 24-month term with a fixed annual interest rate of 10%, paid quarterly.

F88 launches its first public bond issuance with a 10% annual interest rate.

In a low-interest savings environment, with the average corporate bond interest rate at approximately 7.18% and an average term of 4.6 years (as per the Q3/2025 report by the Vietnam Bond Market Association – VBMA), F88’s 10% annual interest rate stands out as highly competitive. The 24-month term also caters to investors seeking stable cash flow, offering a mid-term investment option with strong returns compared to other market alternatives.

This marks F88’s first public bond issuance after years of private bond fundraising. Unlike private bonds, which are restricted to professional investors, public bonds are accessible to all individual and institutional investors. This significantly broadens F88’s investor reach, diversifies its capital sources, and introduces a more stable and sustainable funding channel. Public bond issuance requires stricter compliance with regulatory standards, including profit performance, debt structure, transparent capital use, and feasibility. The Securities Commission’s approval enhances F88’s market credibility, financial capacity, and legal compliance.

F88 representatives emphasized that the public bond issuance is a strategic move to expand funding channels, increase transparency, and strengthen investor confidence. The raised capital will support network expansion, business operations, and financial capacity to meet future growth demands.

Raised capital will bolster F88’s business operations.

In the first nine months of the year, F88 reported impressive pre-tax profits of VND 603 billion, nearing its annual target. Outstanding loans increased by 40% to VND 6.413 trillion, while total disbursements rose by 80% year-on-year, reflecting strong demand for F88’s financial products and services. F88 representatives noted a surge in customer demand, presenting significant growth opportunities for 2026. “We anticipate robust market demand and aim for higher growth in 2026. To support this expansion, F88 is diversifying its funding sources to ensure sufficient financial resources for network growth, product development, and enhanced customer service. This diversification will also help reduce funding costs, enabling lower lending rates for customers,” they added.

Since 2019, F88 has issued nearly VND 5.3 trillion in private bonds, with VND 4.5 trillion already redeemed, maintaining a 100% repayment rate. Even during the 2023 economic challenges and the nationwide corporate bond crisis, F88 fulfilled all interest payment obligations for outstanding bonds. In October, Fiinratings upgraded F88’s credit rating from “BBB-” to “BBB” with a “Stable” outlook, citing improved liquidity and capital mobilization. A Fiinratings report confirmed F88’s liquidity stability through stress tests, ensuring full compliance with financial obligations. This track record underscores F88’s risk management capabilities and commitment to investors, bolstering its entry into the public bond market.

Combining public and private bond issuances is expected to optimize F88’s financial structure, balancing liquidity with long-term stable capital. This strategy is poised to strengthen F88’s financial foundation, expand its investor base, and enhance its market reputation, offering investors a secure and attractive investment opportunity in a market seeking safe and effective products.