HSBC Issues CDs for Second Phase
Hong Kong and Shanghai Banking Corporation (HSBC) on March 20 started issuing book-entry certificates of deposits (CDs) in the US dollar for the second time in the northern and southern economic hubs. These CDs will be sold at their face value and paid at maturity.
Vietnamese clients will be entitled to relatively attractive interest rates. Namely, the interest rate is 3.8 per cent for three-month terms, 4 per cent for six-month terms, 4.2 per cent for nine-month terms and 4.5 per cent for 364-day terms.
Interest rates applicable for corporate clients will be different based on the terms and values of the CDs. The lowest face value of the CDs is US$5,000 at the Hanoi branch and US$10,000 in Ho Chi Minh City.
Presently, HSBC is the first foreign bank that has ever issued CDs in the US dollar in Vietnam. As scheduled, this second issue will last until May 19. The first CD issue was launched on December 26, 2005.
HSBC has had a foothold in Vietnam since 1992 and has opened two branches in Hanoi and Ho Chi Minh City and a Can Tho City-based representative office. Currently, the bank has chartered capital of US$30 million.
Vietnam Economic Times
Vietnamese
