HDBank (HDB) issues convertible bonds to strategic partner Germany’s DEG
HDBank (HDB) issues convertible bonds to strategic partner Germany’s DEG
The Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank - HoSE: HDB) signed an agreement to issue convertible bonds and enter into a strategic tie-up with DEUTSCHE INVESTITIONS- UND ENTWICKLUNGSGESELLSCHAFT MBH (DEG) in HCM City on Friday. 
DEG will invest in convertible bonds issued by HDBank.
The two parties will have a strategic partnership for developing products, services and finance packages for German businesses in Viet Nam and Vietnamese exporters to Germany and Europe.
DEG is a development finance institution owned by German state-owned development bank KWF and is one of Europe’s15 leading development finance institutions.
It is currently present in 19 countries, managing a portfolio of around 8.6 billion euro in private groups around the world. In Viet Nam, DEG has been active for almost 20 years with a portfolio of 220 million euro (US$256.2 million).
Jochen Steinbuch, its regional manager in the Asia Pacific, said: “Viet Nam is seen as a bright spot for foreign investors as the economy is believed to be least affected by Covid-19.
“Thanks to a young population with an expanding middle class, demand for banking and financial services is high.
“HDBank is one of the leading joint stock banks in Viet Nam, always maintaining a good and sustainable growth rate.
“HDBank's financial health, asset quality and business performance are among the best in the industry. Notably its NPL ratio usually stands around 1 per cent and ROE is over 20 per cent. We have great confidence in the development of the bank in the future.”
The agreement opens a new chapter in the long-term co-operation between German and Vietnamese businesses, especially in the context that the EU-Viet Nam Free Trade Agreement took effect recently.
