The State Securities Commission (SSC) Inspectorate stated that MB (Military Bank) used funds obtained from a private bond placement inconsistently with the approved plan and information disclosed to investors.
Specifically, MB had raised the bonds to "supplement long-term tier 2 capital as per State Bank regulations, serve credit and investment needs, and expand the bank's operating capital to meet business growth targets for 2022 and subsequent years." However, the inspection revealed that the bank only used the funds for lending, not for investment.
The SSC informed VnExpress that MB's bond issuance documents detailed the intended use of funds for each purpose. The inspectorate found that the bank only utilized the mobilized capital for lending and not for investment, constituting a misuse of funds.
In a decision on remedial measures issued on 20/1, the State Securities Commission Inspectorate mandated MB to recall 6 out of 11 outstanding bond codes. The bank must refund the purchase price or deposit, plus accrued interest, within 15 days of receiving an investor's request.
Data from the Hanoi Stock Exchange shows that the 6 recalled MB bond codes have a total value of 650 billion VND. All were issued in 2022 with 5-year and 7-year maturities, and without buyback or conversion conditions.
In recent years, banks have been the primary issuers of bonds. According to data from the Vietnam Bond Market Association (VBMA), this group issued nearly 306 trillion VND in 2024, accounting for 69% of the total value of bonds offered to the market. This figure rose to 400 trillion VND last year.
Bank bond issues typically have an average maturity of about 4 years, aligning with medium and long-term capital needs for lending and investment activities. Most banks opt for private placements, targeting experienced institutional investors. This strategy helps optimize issuance costs and ensures efficiency.
MB estimates its 2025 pre-tax profit to reach 34.2 trillion VND, an 18.7% increase year-on-year. Total assets as of the end of last year stood at 1.6 quadrillion VND, up 35% compared to 2024. The non-performing loan ratio is kept below 1.3%. MB currently operates several member companies across banking, securities, investment fund management, insurance, consumer finance, debt management, and asset exploitation. The bank's market capitalization exceeds 217 trillion VND.
Phuong Dong - Tat Dat
