HSBC Mobilizes US$20Mln via CDs Issue

The Hong Kong and Shanghai Banking Corporation (HSBC) has raised as much as US$20 million from individual clients in Vietnam from five issues of US dollar certificates of deposits (CDs) since December 2005, said an HSBC executive.

 

HSBC was the first foreign bank to launch the service with competitive interest rates and simplified procedures in Vietnam, according to Ghislain Nguyen, HSBC's Manager of Personal Financial Services.

 

HSBC began its sixth CD issue in Ho Chi Minh City and Hanoi on November 27, which is scheduled to run until January 26, 2007, he added.

 

The bank offers CDs with a minimum face value of $5,000 to clients in Hanoi and $10,000 to clients in Ho Chi Minh City. The CDs carry a monthly interest rate of 4.1 per cent for three-month terms, 4.25 per cent for six-month terms, 4.5 per cent for nine-month terms and 4.85 per cent for one-year terms.

(Vietnam Economic Times Nov 29 p1, Vietnam News Nov 28)