HDBank keeps foreign ownership cap at 21.5%

HCM CITY — The HCM City Development Joint Stock Co妹妹ercial Bank (HDBank) has decided to lock the foreign ownership limit at  二 一. 五 per cent of the charter capital.

The limit was set at  二 一. 五 per cent so that there is more room to sell stakes to the strategic investor, HDBank said in a statement on Monday.

Under existing regulations, foreign ownership limit at banks is  三0 per cent of the charter capital.

HDBank also plans to offer US$ 一 六0 million 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 co妹妹on shares, are non-guaranteed and go without covered warrants.

Income raised from the bond sale will be spent increasing the bank’s tier  二 capital. Tier  二 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- 一 九 pandemic, rating agency Moody’s has kept its B 一 rating for HDBank, acknowledging that the Vietnamese lender has progressed well to improve the quality of assets and capital competency, and make sustainable profitability.

HDBank shares are listed on the Hồ Chí Minh Stock Exchange as HDB. Its shares slid  一. 七 per cent to VNĐ 二 九, 二00 ($ 一. 二 六) apiece, having gained a total  二 四 per cent since July  二 七. — VNS