TPBank could issue convertible bonds to foreign investors

As TPBank has virtually no room left for foreign investors, the bank is thinking of issuing convertible bonds to interested parties to whip up more capital.

Bui Thi Thanh Huong, TPBank deputy general director, said at the bank’s pre-listing seminar held in Hanoi on April 12 that following its private placement of 15 per cent holding to investors, there is only 0.77 per cent left for foreign investors.

Singapore-based SBI Ven Holdings Pte., Ltd. who has been holding 19.9 per cent of TPBank’s holdings for some 10 years, according to Huong, has acquired more shares through a private placement to maintain their current shareholding.

Also, with IFC and PYN Fund Management who each secured 4.99 per cent, the room left for foreign investors is very small.

“We expect the government will lift the foreign ownership limit (FOL) in the banking sector in the future and should this come true, it will be a great opportunity for TPBank," Huong said.

Given that quite a few foreign investors are currently interested in TPB, including a private fund from Saudi Arabia that manages billions of dollars in investment, Huong said that the bank could consider issuing convertible bonds for these investors.

“Some have even asked us to issue convertible bonds as an option while waiting for the FOL to be lifted. We may well consider this option as it can provide us with more capital to support our development of technology, know-how, products, policies, and customers,” noted Huong.

Hanoi-based TPBank (ticker: TPB), meanwhile, has scheduled April 19 as the date to list 555 million shares on the Ho Chi Minh City Stock Exchange (HSX) at the initial price of VND32,000 ($1.41). TPB’s market capitalisation, as a result, is expected to go up to VND17.76 trillion ($789.33 million), which can put the lender in the 8th spot among listed banks in terms of market capitalisation.

“The liquidity of the stock market is rather good at present, and with Vietnam en route to be upgraded to Emerging Markets Status by MSCI as well as the incoming capital inflows, it is an opportunity for us right here. Also, as you can observe, banking stocks are taking the lead in the market and with our good performance in 2017, it is just the right time for us to get listed now,” said Do Anh Tu, vice chairman of TPBank, on the sidelines of the pre-listing seminar.




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