HDBank plans to let its consumer finance arm HD Saison going public

HDBank (HoSE: HDB) plans to conduct an initial public offering for HD Saison after having it converted into a joint stock company while seeking strategic partners and favorable conditions, Dau Tu newspaper cited information from the recent annual general shareholders’ meeting.  

The Vietnamese lender currently holds 50% stakes in HD Saison while Japan's Credit Saison is a 49% shareholder in the bank's consumer finance arm. The remaining 1% is owned by Ho Chi Minh Securities Corporation JSC.

HDBank, 13.34% owned by Sovico Holdings of Southeast Asia’s richest woman Nguyen Thi Phuong Thao, chairwoman of budget airline Vietjet, got shareholders’ approval to pay 2019 accumulated stock dividend and bonus share up to 65 percent.

Shareholders will be awarded 50 new dividend shares on every 100 existing shares and also get additional 15 new bonus shares on every 100 holding shares.

Issue $1 billion international bonds

The Vietnamese private lender also got shareholders’ support to issue $1 billion non-convertible bonds to international markets under the Euro Medium Term Note program and list on Singapore exchange.

The US dollar non-convertible bonds without collaterals nor warrants will be issued in several tranches until 2024. The expected term is at least 3 years and maximum 10 years from the date of issuance, according to documents at the meeting.

In addition to the international bond, HDBank got shareholders’ approval to issue 5,000 US dollar convertible bonds or 10,000 convertible bonds in Vietnam dong. The total issuance value is expected at $500 million or VND10 trillion.

The term of convertible bonds is 5 years, 1 day from the date of issuance.

With its current scale, it is imperative for HDBank to participate in the international bond market, Nguyen Thi Phuong Thao, the bank’s vice chairwoman, said.

“Due to the impacts from the COVID-19 pandemic, the governments of several countries have injected a lot of money into the international market at astonishingly low interest rates, even 0 percent. So we believe that this is an opportunity to mobilize capital for the bank's recovery plans and investment projects”, she added.

The lender targets 2020 pretax profit to increase by 13% from 2019 to VND5,661 billion ($243.5 million).

To achieve the profit, HDBank aims to mobilize VND275,246 billion ($11.8 billion), an increase of 35% and a credit balance of VND177,970 billion ($7.6 billion), up 16% compared to the year 2019.

In 2020, HDBank expects its total assets to increase by 33 percent to VND305 trillion ($13 billion), deposits to VND275 trillion, up 35 percent, and loans outstanding to VND178 trillion.

HDBank plans to increase its charter capital from VND9,810 billion ($421.6 million) to over VND16,088 billion ($691.5 million) in 2020.

In the first quarter of this year, HDBank’s total consolidated operating income increased by 27.8 percent year-on-year to VND3.15 trillion. Pre-tax profit rose by 13.5 percent to VND1.25 trillion.

The non-performing loans ratio of the parent bank continued to be closely controlled, with its 0.98 percent rate placing it among the banks with the lowest ratios in the industry.

Nguồn Dau Tu