HDBank issues convertible bonds to foreign financial institutions
sonnguyen 25-12-2020, 15:35
HDBank issues convertible bonds to foreign financial institutions
An HDBank transaction office in HCM City. — Photo courtesy of HDBank

The Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank – HoSE: HDB) has signed agreements to issue convertible bonds and enter into strategic tie-ups with foreign investors to fulfil its plan to supplement tier 2 capital by US$160 million.

Two major reputed Asian financial institutions have registered to buy all 1,300 international bonds for a total of $130 million that the bank plans to issue in 2020.

It earlier signed an agreement to issue convertible bonds and enter into a strategic tie-up with DEG, a development finance institution owned by German state-owned development bank KWF.

According to information received from the Ho Chi Minh Stock Exchange, DEG has invested $30 million in the convertible bonds.

Thus, HDBank has mobilised $160 million from the international market to supplement its tier 2 capital in accordance with the resolution approved by the general meeting of shareholders and the board of directors, and get ready for high growth plans in line with its strategy.

Besides these investment agreements, international investors and HDBank have also signed a strategic agreement to foster Vietnamese financial and banking industry, especially HDBank.

HDBank’s strategic cooperation with major and reputed investors around the world attest to the trust international investors have in Viet Nam’s banking industry outlook and HDBank’s growth potential and operation quality.

HDBank recently completed a second hike in charter capital to more than VND16.088 trillion ($693.7 million) by paying dividends in shares.

After two dividend payments and a bonus issue, existing shareholders got a total of 65 per cent.

Amid the world economy’s tribulations due to the impact of the Covid-19 pandemic, HDBank achieved positive business results, while bad debts and other safety indicators are at excellent levels.

International credit rating agency Moody’s recently announced it is maintaining the B1 credit rating for HDBank, with an assessment that the lender has made positive progress in improving asset quality and capitalisation, and achieved high profitability and sustainability.

The bank believes that it will fulfil its 2020 plan and is ready to achieve breakthroughs. — VNS