Sacombank Issues Bonds at 10% Coupon, Highest Among Banks in 2025

Overview

Sacombank (STB) has raised VND 3,650 billion through three private bond tranches with a fixed annual coupon of 10%, the highest rate among bank bonds issued this year in Vietnam. The move aims to strengthen the bank’s capital buffer amid sluggish deposit growth, as the bank prioritizes risk provisioning over aggressive profit expansion.

Key Facts

• Sacombank issued three bond tranches in the last week of July, with one tranche worth up to VND 2,230 billion.
• All tranches have a 6-year tenor and a fixed annual coupon of 10%.
• The 10% coupon is nearly 3 percentage points higher than some long-term deposit products and well above the average bank bond rate of 8.5% in H1 2025.
• The issuance is part of Sacombank’s plan to sell VND 20,000 billion in private bonds.
• Customer deposits at Sacombank grew only about 4.8% from the beginning of the year to end-Q2.
• Sacombank targets pre-tax profit of VND 8,100 billion for 2025, up 6% year-on-year, but H1 pre-tax profit fell to VND 4,000 billion, down nearly half from the same period last year.
• The bank’s total assets stood at over VND 882,000 billion at end-June, down nearly 3% from the start of the year, while credit grew 1.5% to over VND 636,000 billion.

What Happened

Sacombank (Sài Gòn Thương Tín) issued three private bond tranches in late July, raising a total of VND 3,650 billion. The bonds carry a fixed annual coupon of 10%, a significant jump from the rates on Sacombank’s own bonds issued a month earlier and nearly three percentage points higher than some long-term savings products. According to data from the Hà Nội Stock Exchange, one tranche alone was worth VND 2,230 billion.

The bank stated that the issuance is intended to “strengthen the capital buffer, increase risk resilience, and reflect prudent management thinking.” The actual issuance value is based on capital needs, market conditions, and investor interest. This comes as deposit growth remains slow, with customer deposits rising only about 4.8% in the first half of the year.

Market Context

Sacombank (STB) trades on HOSE and closed at VND 73,200 on August 5, 2026. The bond issuance occurs amid a challenging environment for banks, with credit growth modest and deposit mobilization weak. The 10% coupon is notably higher than the average bank bond rate of 8.5% in H1 2025, reflecting the bank’s need for medium- to long-term capital. This move also aligns with the bank’s strategy of prioritizing risk provisioning, as evidenced by a sevenfold increase in provisioning in H1, which weighed on profits.

Strategic Significance

Sacombank’s decision to issue bonds at a 10% coupon underscores its focus on strengthening its capital base and provisioning buffers rather than chasing short-term profit growth. This prudent approach may appeal to long-term investors seeking stability, especially in a rising-risk environment. The bank’s plan to issue up to VND 20,000 billion in private bonds provides a substantial funding source for future growth, but the high cost of capital could pressure net interest margins if not deployed efficiently.

What to Watch

• Q3 2025 earnings release: Monitor whether provisioning remains elevated and how profit trends evolve.
• Deposit growth: Watch if the bank’s deposit mobilization improves, which could reduce reliance on expensive bond funding.
• Further bond issuances: Track whether Sacombank continues to tap the bond market at similar or higher rates.
• Credit growth: Assess if the bank can accelerate lending to utilize the raised capital effectively.
• Regulatory updates: Any changes in bond issuance rules or interest rate environment could impact the bank’s funding costs.