The Perfect Time to Add Bonds to Your Investment Portfolio
2024 is a challenging year, but it also presents opportunities to boost investment yields. Experts note that as savings account interest rates continue to fall, investors are motivated to explore alternative investment avenues.
Over the past few days, domestic gold prices have consistently hit record highs despite a downward trend in global gold prices. Gold, often considered a safe haven, now carries more risk and is subject to unpredictable fluctuations due to its dependence on economic and geopolitical factors. Meanwhile, real estate investments require substantial capital and often come with legal complications.
In this context, bank bonds have emerged as an ideal choice for those seeking a safe and low-risk investment option. When investing in bonds, it is reassuring to know that the issuing organization is a reputable brand with stable financial capabilities and a sustainable business model, as demonstrated over many years.
Ms. Ha Anh (29 years old, a Hanoi-based office worker), shared her perspective: “With my stable monthly income, I always set aside a portion for investments. By diversifying my portfolio and spreading my eggs into multiple baskets, I can minimize risks and maximize profit potential.”
“For the past two years, I’ve been interested in and prioritized investing in bank bonds. I participated in BAC A BANK’s 2022 public bond offerings, and amid the current market volatility, it has proven to be an easily accessible, safe, and sustainable investment option that suits my financial capabilities. Additionally, I received interest payments from two bond investments with BAC A BANK last year, and their timely payments give me confidence to continue investing in this offering,” Ha Anh added enthusiastically.
Profitable and Secure Investments with BAC A BANK’s Publicly Issued Bonds
From May 27, 2024, to 9:00 AM on June 17, 2024, BAC A BANK (Bank of Asia Commercial Joint Stock Bank) is officially offering 20,000,000 bonds in the second public offering – Batch 1. Over the next three years, BAC A BANK plans to conduct six bond issuances, with a total offering value of 9,000 billion VND at par value.
In this first issuance, BAC A BANK’s bonds have a par value of 100,000 VND per bond. Interest is paid periodically every 12 months, with a term of seven years for the two bond symbols BAB201-07L and BAB201-07C, and eight years for the bond symbol BAB201-08C. The bank offers flexible buyback options at 18 months, 24 months, and 36 months from the issuance date, depending on the bond symbol.
Investors in BAC A BANK’s second public offering – Batch 1 will enjoy optimized and flexible interest rates that are always higher than the 12-month term deposit rates, with a maximum spread of up to 1.9% per annum. Even more attractive, individual and institutional investors only need a minimum capital of 50,000,000 VND and 100,000,000 VND, respectively, to access this safe and profitable investment opportunity.
Similar to the previous issuance, these bonds are non-convertible, do not include warrants, and are not asset-backed. The product is distributed directly at BAC A BANK’s head office and nationwide network of branches and transaction offices, making it easily accessible to investors.
Upon completion of the offering, BAC A BANK’s bonds will be registered centrally at the Vietnam Securities Depository (VSDC) and listed on the Hanoi Stock Exchange (HNX), in line with the government’s direction to develop a healthy and transparent bond market. This allows investors to proactively trade, pledge bonds, and access super-competitive interest rates, providing financial flexibility if unexpected capital needs arise. Investors also enjoy the full rights of bond ownership, including transfer and donation.
Throughout its nearly 30-year history, BAC A BANK has consistently pursued a multi-faceted and modern development orientation, meeting the diverse financial needs of all economic sectors. The permission to issue and officially offer the second public offering – Batch 1 bonds helps BAC A BANK balance liquidity, strengthen medium and long-term capital sources, demonstrate strong financial health, and meet the State Bank’s safety and risk management requirements.
For more information, please visit www.baca-bank.vn, contact our Customer Care Center at 1800 588 828 (toll-free), or visit your nearest BAC A BANK branch or transaction office for direct consultation.
