The bonds have two tenors. For seven-year maturity bonds, the floating coupon rate is the reference rate plus 1.3 percent, and for 10-year maturity bonds, reference rate plus 1.4 percent.

The reference rate refers to the average of the 12-month deposit rates for individuals at BIDV, Vietcombank. VietinBank and Agribank, the four biggest state-owned lenders in Vietnam by assets. The average rate at the four banks now stands at 6.92 percent. 

The bonds, which are non-convertible and non-collateral, are issued to increase the bank’s medium and long term capital.

Since the beginning of this year, excluding its latest issue, BIDV has raised VND3 trillion ($129.4 million) from bonds.

BIDV last week became the largest bank by charter capital in the country after selling a 15 percent stake to South Korea's KEB Hana Bank.

Its charter capital now is over VND40 trillion ($1.73 billion), surpassing those of Vietcombank and Vietinbank, who are close behind at over VND37 trillion ($1.6 billion) each.

In  January-August, Vietnamese banks issued over VND56 trillion ($2.42 billion) worth of bonds, accounting for half of the total bond issues, according to stock brokerage Saigon Securities Inc (SSI). 99.6 percent of bank bonds were bought, it added.