An HDBank office in Hanoi (Photo: VNA)
HCM City (VNA) – Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank) has decided to lock the foreign ownership limit at 21.5 percent of the charter capital .
The limit was set at 21.5 percent so that there is more room to sell stakes to strategic investors, HDBank said in a statement on September 7.
Under existing regulation s, foreign ownership limit at banks is 30 percent of the charter capital.
HDBank also plans to offer 160 million USD worth of international convertible bonds to institutional investors in developed markets.
The bonds will mature in five years and one day. The bonds can be converted into common shares, are non-guaranteed and go without covered warrants.
Income raised from the bond sale will be spent increasing the bank’s tier 2 capital. Tier 2 refers to a bank’s supplementary capital and includes undisclosed reserves, debts and hybrid financial products.
With the capital raise, HDBank will increase funding for medium-term and long-term loans and reach its business targets. In addition, the bank will be able to meet requirements of asset quality and capital adequacy ratio.
Amid the COVID-19 pandemic, rating agency Moody’s has kept its B1 rating for HDBank, acknowledging that the Vietnamese lender has progressed well to improve the quality of assets and capital competency, and make sustainable profitability./.