Sacombank Issues VND 3.65T Bonds at 10% Coupon, Highest Bank Rate This Year

Overview

Sacombank (STB) has issued VND 3,650 billion in bonds with a fixed coupon of 10% per year, the highest rate among bank bonds issued this year. The three tranches, listed on the Hanoi Stock Exchange, are part of a larger VND 20,000 billion private placement plan aimed at strengthening the bank’s capital buffer. This move comes as the bank prioritizes risk provisioning over profit growth, with pre-tax profit for H1 2025 falling nearly 50% year-on-year.

Key Facts

• Sacombank issued three bond tranches in the last week of July, totaling VND 3,650 billion (approximately USD 146 million).
• The largest tranche was VND 2,230 billion.
• All tranches have a 6-year tenor with a fixed annual coupon of 10%.
• The 10% coupon is nearly 300 basis points higher than Sacombank’s own bonds issued a month earlier and exceeds the average bank bond rate of 8.5% for H1 2025.
• The issuance is part of a VND 20,000 billion private placement plan approved by the bank.
• Customer deposits grew only 4.8% from the start of the year to end-Q2 2025.
• H1 2025 pre-tax profit was VND 4,000 billion, down nearly 50% from the same period last year, due to provisioning that was 7 times higher year-on-year.
• Total assets at end-June were over VND 882,000 billion, down nearly 3% from the start of the year; credit grew 1.5% to over VND 636,000 billion.

What Happened

Sacombank, officially known as Ngân hàng Sài Gòn Tài Lộc, issued three bond tranches in the final week of July, raising VND 3,650 billion. The bonds carry a fixed annual coupon of 10%, a significant jump from the bank’s own previous issuances and well above the average bank bond rate of 8.5% in the first half of the year. According to data from the Hanoi Stock Exchange, the largest tranche was VND 2,230 billion.

The bank stated that the issuance aims to “strengthen the capital buffer, increase resilience to risks, and reflect prudent governance thinking.” The actual issuance value is based on capital needs, market conditions, and investor interest. This is part of a broader plan to sell up to VND 20,000 billion in private placement bonds.

The high coupon reflects Sacombank’s need for medium- and long-term capital amid slow deposit growth. Customer deposits rose only 4.8% from the start of the year to end-Q2, while the bank has been aggressively provisioning for bad debts. In H1 2025, provisioning expenses were seven times higher than the same period last year, reducing pre-tax profit to VND 4,000 billion, nearly half of the VND 7,900 billion earned in H1 2024.

Market Context

Sacombank (STB) trades on the Ho Chi Minh Stock Exchange (HOSE). The stock closed at VND 73,200 on August 5, 2026. The bond issuance comes at a time when Vietnamese banks are facing pressure to maintain capital adequacy ratios amid rising credit risk and regulatory tightening. The 10% coupon is notably higher than deposit rates for similar tenors, making the bonds attractive to institutional investors such as funds, securities firms, and insurance companies. However, the high cost of funding may weigh on net interest margins in the near term.

Strategic Significance

This issuance underscores Sacombank’s strategic pivot toward risk management and capital resilience over short-term profit growth. By paying a premium for long-term funding, the bank is locking in stable capital to support its credit growth and provisioning needs. The move aligns with its stated goal of increasing the bad-debt coverage ratio, which is a key metric for long-term stability. For investors, the high coupon signals that Sacombank is willing to pay up for capital, which could pressure future earnings but also strengthen its balance sheet against potential asset-quality deterioration.

What to Watch

• Q3 2025 earnings release: Watch for provisioning levels and net interest margin trends.
• Further bond issuances under the VND 20,000 billion plan: Monitor the pace and coupon rates of subsequent tranches.
• Deposit growth: If customer deposits continue to lag, reliance on expensive bond funding may persist.
• Regulatory updates: Any changes to capital adequacy requirements or bond issuance rules from the State Bank of Vietnam.
• Asset quality indicators: Non-performing loan ratio and bad-debt coverage ratio in upcoming quarterly reports.