As Vietnam accelerates economic recovery amid Covid-19, IFC, LeapFrog Investments, and DEG have invested $165 million in convertible Tier 2 bonds issued by HDBank, a leading Vietnamese private retail and SME bank.
As Vietnam accelerates efforts to transition to low-carbon growth, IFC is providing a $70 million loan to HDBank – one of the country’s leading banks in climate finance – to increase its funding for renewable energy projects in Vietnam.
The bank is planning to issue convertible bonds worth $300 million to supplement its operating capital while improving its capital adequacy ratio and lessening the maturity risk on the balance sheet.
Thanks to the ecosystem combined among HDBank, PGBank, Petrolimex and Vietjet, HDBank expects to have around 40 million customers in the future.
Instead of VietinBank, HDBank is taking requisite steps to acquire PG Bank and the strategic deal is expected to finalize in this September after a merger request to be submitted to the State Bank in this month.
According to HDBank’s listing prospectus, its total outstanding loans reached VND101,410 billion (roughly US$4.5 billion) and pre-tax profit was VND2,260 billion (roughly US$99.71 million) in the first 11 months of 2017.
HDBank, formally known as Ho Chi Minh City Development Joint Stock Commercial Bank, plans to list its shares on the Ho Chi Minh Stock Exchange (HOSE) on January 5 at a reference price of VND33,000 (US$1.46) per share.
HDBank shares will be listed on the Hochiminh Stock Exchange (HOSE) in early 2018.
Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank) expects to sell shares worth US$300 million to foreign investors in its the initial public offering (IPO) this month.
Vice president of Ho Chi Minh Development Joint Stock Commercial Bank (HDBank) Nguyen Thi Phuong Thao said that the bank would sell 20 per cent stake worth US$300 million to foreign investors this year.
