LPBank Plans to Redeem Old Bonds as Spread on New 10-Year Bonds Rises 1.7 Percentage Points
LPBank plans to redeem VND 173.1 billion in subordinated bonds on December 30, 2026, five years after issuance. The bank recently placed about VND 2.96 trillion in new bonds, with the fixed spread on its new 10-year bonds 1.7 percentage points higher than on the old bonds.
Loc Phat Vietnam Commercial Joint Stock Bank (LPBank) approved the early redemption of all LPB121036 bonds on November 9, 2026. Issued on December 30, 2021, the bonds were originally due to mature on December 30, 2031, and have a total outstanding face value of VND 173.1 billion. The bank plans to finalize the list of bondholders on December 21, 2026, and redeem the bonds on December 30 at face value plus accrued interest.
The bonds are unsecured subordinated debt eligible for inclusion in Tier 2 capital. Their interest rate resets every 12 months and stands at 7.4% per year for the interest period from December 30, 2025, to December 30, 2026. Based on the outstanding amount, interest for the period is estimated at about VND 12.81 billion, bringing the planned total payment of principal and interest to about VND 185.91 billion.
LPBank plans to redeem LPB121036 bonds with a total face value of VND 173.1 billion five years after issuance.（VietVance）
In its public offering from October 6 to November 5, 2026, LPBank placed VND 2.95523 trillion in bonds, or 74.19% of the amount offered. The new bonds have seven, eight and 10-year terms, with 99.63% of the amount placed concentrated in the first two terms. The new 10-year bonds carry a fixed spread of 3.9% per year, 1.7 percentage points higher than the 10-year bonds slated for redemption.
LPBank placed about VND 2.96 trillion in new bonds, with 99.63% of the amount concentrated in seven and eight-year bonds.（VietVance）
The three new bond issues carry annual interest rates of 9.68%, 9.75% and 9.8%, respectively, for their first interest period from November 5, 2026, to November 5, 2027. The rates are based on the average rate for 12-month VND personal savings deposits at four banks, plus a fixed spread. The first-year rate on the new 10-year bonds is 2.4 percentage points higher than the fifth-period rate on the old bonds, with 1.7 percentage points of the difference attributable to the change in spread.
As of September 30, 2026, LPBank's outstanding bonds totaled VND 33.29461 trillion, up 19.58% from the end of the previous year. Figures disclosed by the bank for June 30, 2026, showed Tier 2 capital of VND 14.772 trillion and a capital adequacy ratio of 11.18%. Whether the newly issued subordinated bonds can be included in Tier 2 capital depends on their meeting the relevant regulatory requirements.
As of June 30, 2026, LPBank's capital adequacy ratio was 11.18%, and Tier 2 capital accounted for 25.62% of its total capital after deductions.（VietVance）
Source: VietVance
