OCB secures additional funds to the tune of $49.7 million via bond sales
Orient Commercial Joint Stock Bank (OCB) has announced its ongoing strategy to manage its liabilities effectively, which includes a significant charter capital increase and the redemption of existing bonds.
Bond Redemption
In a move to bolster its financial stability, OCB has decided to exercise its right to redeem all bonds before maturity on August 8, 2025. This means that bondholders must sell their bonds back to the bank. The payment process involves holders submitting required documents by August 5, 2025, and receiving the proceeds via transfer on August 8, 2025.
Charter Capital Increase
To strengthen its financial foundation and support an expansive project pipeline for 2025, OCB has initiated a share issuance plan. This plan, based on the resolution of the 2025 Annual General Meeting of Shareholders, aims to increase the bank's charter capital.
Bond Issuance vs. Buybacks
While there is no specific information about new bond issuances or buybacks beyond the bond redemption and charter capital increase, the current focus appears to be on redeeming existing bonds and increasing charter capital through share issuance.
This approach by OCB supports its continued growth and ensures financial stability, enabling the bank to undertake expanded project developments.
Recent Achievements
Prior to this announcement, OCB has had a productive year, raising an additional VNĐ1.3 trillion (US$49.7 million) through bond issuance on July 15, 2025. The bond issuance, identified by code OCB12512, consists of 1,300 bonds with a face value of VNĐ1 billion each.
Since the start of the year, OCB has also bought back seven bond lots totalling VNĐ8.5 trillion. In addition, OCB recently announced a cash dividend of 7 per cent for its shareholders, translating to VNĐ700 per share, with a total payout expected to exceed VNĐ1.7 trillion.
The Hanoi Stock Exchange (HNX) also announced the successful bond issuance by OCB, with OCB repurchasing VNĐ1 trillion worth of bonds coded OCBL2427006, issued on July 18, 2024, and maturing in 2027. This move will result in the creation of approximately 197.3 million new shares, increasing OCB's charter capital to over VNĐ26.63 trillion.
With these developments, OCB continues to demonstrate its commitment to effective liability management and financial growth. This latest effort by OCB to bolster its capital base is a testament to the bank's resilience and its focus on maintaining a strong financial position.
In line with its strategy to enhance financial stability, OCB plans to utilize AI technologies for more strategic investing in business opportunities, aiming to optimize its profitability and growth.
As part of its ongoing charter capital increase, OCB is considering investing in innovative fintech solutions to improve its bond issuance and redemption processes, aiming to streamline operations and maintain a strong financial position.
