MB was required to withdraw six lots of bonds and refund investors

According to the inspection agency, Military Bank (MB) used the proceeds from the private offering not in accordance with the approved plan and as disclosed to investors.

Specifically, MB mobilized bonds to “supplement long-term Tier 2 capital according to the regulations of the State Bank, serving the needs of credit and investment as well as increasing the scale of the bank’s operating capital to meet the business growth target in 2022 and the following years”. However, at the time of the inspection, the bank only lent but did not invest.

Talk to VnExpressSSC said that MB’s bond issuance documents detail the amount of money to be used for each purpose. At the time of the inspection, this bank only used mobilized capital to lend without investing, so it was for the wrong purpose.

In the decision to apply remedial measures issued on January 20, the State Securities Commission Inspectorate requested MB to recall 6 out of 11 outstanding bond codes. The bank must refund the purchase price or deposit plus additional interest within 15 days of receiving the investor’s request.

According to data from the Hanoi Stock Exchange, MB’s bond codes subject to recall have a total value of 650 billion VND. All are issued in 2022 and have no redemption or swap conditions. These bond codes have terms of 5 years and 7 years.

In recent years, banks have been the biggest issuers of bonds. According to data from the Vietnam Bond Market Association (VBMA), this group will issue nearly VND 306,000 billion in 2024, accounting for 69% of the total value of bonds offered to the market. Last year, this number increased to 400,000 billion VND.

The common point of bank bond lots is an average maturity of about 4 years, suitable for medium and long-term capital needs to finance lending and investment activities. In addition, most banks choose the form of private issuance, focusing on institutional investors with experience and market understanding. This helps them optimize issuance costs and ensure efficiency.

In 2025, Military Bank estimates pre-tax profit to reach VND 34,200 billion, an increase of 18.7% over the same period. Total assets as of the end of last year were 1.6 million billion VND, an increase of 35% compared to 2024. The bad debt ratio is controlled below 1.3%.

MB currently has many member companies in the fields of banking, securities, investment fund management, insurance, consumer finance, debt management and asset exploitation. The bank’s capitalization value on the stock market reached more than 217,000 billion VND.