HDBank plans to convert international bonds into shares at the price of VND 41,800

3 min read
HDBank dự kiến chuyển đổi trái phiếu quốc tế thành cổ phiếu theo giá 41.800 đồng - Ảnh 1.

Illustration. (Source: HDBank)

HDBank’s Board of Directors (BOD) has just approved a number of contents related to the issue of international convertible bonds.

According to the decision of the Board of Directors, HDBank can repurchase bonds before maturity if the bondholders request. In addition, in case the bond holder exercises the right to convert bonds into shares but the foreign ownership ratio at the time of conversion does not meet, HDBank will redeem bonds.

Conversion period is after 12 months 1 day to 59 months from the date of issuance. The conversion can be done once for all bonds held by investors.

The Board of Directors also determined that the conversion price of bonds into shares is not lower than the book value in the latest financial statements at the time of conversion. The expected convertible price is VND 41,800 and may be adjusted for the required future dilution conditions.

In related developments, HDBank announced that Deutsche Investitions- und Entwicklungsgesellschaft – DEG (DEG), a German financial institution, will invest in convertible bonds issued by HDBank. At the same time, DEG and HDBank will jointly strategically develop products, services and finance for German businesses in Vietnam as well as Vietnamese enterprises exporting to Germany and Europe.

Previously, HDBank’s Board of Directors decided to issue 160 million USD of international convertible bonds. Bonds are issued with a term of 5 years and 1 day, which can be converted into ordinary shares, without collateral and without warrants. Bonds will be included in HDBank’s tier 2 equity capital.

HDBank plans to issue the above bonds this year with the target audience of institutional investors in developed markets.

The bank said that the revenue from issuing bonds will be added to medium and long term capital, serving the planned growth plan. At the same time, the bank will further improve the asset quality index, capital adequacy ratio.

At the 2020 annual meeting held at the end of June, HDBank shareholders approved a plan to issue $ 500 million (equivalent to more than 10,000 billion dong) of convertible bonds. Bonds are issued on international or Vietnamese market, assigned to the Board for decision. Release time in 2020 and / or 2021.

Answering the questions of shareholders about the reason for issuing international convertible bonds, Ms. Nguyen Thi Phuong Thao, Standing Vice Chairman of HDBank said: Participating in the international capital market is an inevitable trend. With the support for the economy affected by the COVID-19 epidemic, countries around the world have pumped out a large amount of cheap and cheap capital into the market. HDBank sees this as a good opportunity to take advantage of the bank’s customer support and projects.

This is a separate convertible bond for strategic investor partners, ensuring benefits for the bank in long-term capital. At the same time, it is possible to consider converting into contributed capital, shares.

Regarding HDBank’s business results, the accumulated 6 months of the year, the bank’s pre-tax profit reached 2,908 billion VND, an increase of 31.5% over the same period in 2019, fulfilling 51.4% of the plan.

By the end of June, the total mobilized capital reached 213,932 billion VND, of which mobilization from economic organizations and individuals reached 178,524 billion VND, an increase of 18.2% compared to 2019. Credit outstanding balance reached 168,772 billion VND, up 10.3%.

Source: vietnambiz.vn – Translated by fintel.vn