Bac A Bank raises $41.9M in bonds, plans early payoff of $30.9M debt
What's the deal? Bac A Commercial BankDealroom has a profile for this one. Try Dealroom → (BAB) raised a net 1,082.9 billion dong (≈$41.9 million) through a public bond offering, concluding distribution on October 12, 2026. The Vietnamese lender sold nearly 7.4 million BAB205-07L bonds to 3,794 investors and nearly 3.5 million BAB205-07C bonds to 1,141 investors.
The details: Both tranches are subordinated, non-convertible, unsecured, and eligible as Tier 2 capital. The seven-year bonds carry first-period rates of 9.4% for the BAB205-07L code and 9.6% for the BAB205-07C code. Demand fell short of targets, with the two classes selling 73.61% and 61.41% of registered volume.
Why now? Immediately after the raise, Bac A Bank set a plan to repurchase its entire 800 billion dong (≈$30.9 million) BAB12508 issue early, on November 13, 2026. That bond was issued in November 2025 with a three-year term and would otherwise mature in November 2028.
What's the endgame? The early redemption lets the bank "restructure its balance sheet and optimize its cost of capital." It plans to fund the buyback from loan repayments tied to earlier bond proceeds, plus other mobilised capital, accumulated capital, and operating profits.
As of October 12, 2026, Bac A Bank's total debt stood at over 201,735 billion dong, of which outstanding bond debt made up 18,577.7 billion dong.
The signal: The raise fits a wider shift toward market funding, as Vietnamese banks' lending has outpaced deposit growth and rising funding costs push lenders to issue more bonds. Subordinated issues like this one shore up regulatory capital as well as lending capacity — peers including BIDV and VietinBank have announced similar Tier 2 programs.
Read more: vietnam.vn
Image credit: Generated with Gemini
