HDBank raises charter capital to enter top ten banks in Vietnam

December 20, 2017 | 15:14

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Recently, State Bank of Vietnam (SBV) has approved of Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank) raising its charter capital for the second time by around $43 million, from VND8.8 trillion ($388.7 million) to VND9.8 trillion ($431.9 million), joining the top 10 Vietnam-based banks having the largest charter capital.

In early 2017, the bank was reported to have its charter capital raised for the first time by 9 per cent via dividend-paying stocks.

On the basis of the plan to separately issue shares to strategic shareholders that was approved at the annual general meeting (AGM) on October 17, the board of directors (BOD) adopted the plan to separately issue 98.1 million shares in order to increase the bank’s charter capital on November 6.

Additionally, HDBank planned to offer 20 million shares for its staff at the price of VND10,000 ($0.44) per share. The deadline for the offering is no later than the first quarter of 2018.

This is the second time HDBank has raised its charter capital

Throughout October and November, the bank’s AGM green-lighted a series of resolutions authorising the BOD to step up the preparation process for the listing of HDBank.

On December 4, HDBank submitted the documents to list nearly 882.9 million shares on the Ho Chi Minh City Stock Exchange (HoSE) for approval. From December 14, the bank’s shares stopped trading on the over-the-counter market (OTC) to prepare for the listing.

Likewise, HDBank expects to register its depository on the Vietnam Securities Depository (VSD) and list its shares on HoSE by the end of 2017 or in early 2018.

As of the end of the third quarter, HDBank was estimated to have total assets of VND174.6 trillion ($7.7 billion), total mobilised capital of VND156.4 trillion ($6.8 billion), and total outstanding credit balance of VND104.2 trillion ($4.5 billion).

In addition, the bank kept the proportion of bad debts under control, with the ratio of merely 1.2 per cent, which was relatively low compared to other banks. As shown in the bank’s financial statement, its after-tax profit in the third quarter mounted up to VND825 billion ($36.2 million) and the accumulated profit of the first three quarters reached VND1.5 trillion ($66 million).