Vietnam's private lender HDBank plans to raise foreign ownership cap, issue shares

HDBank, one of the leading private lenders in Vietnam, is seeking shareholders' opinions on relocation of its headquarters, raising its foreign ownership limit, and share issuances to solidify its shareholder structure.

According to a notice sent to shareholders on Tuesday, other issues to seek shareholders’ opinions in writing include amendments and supplements to HDBank's charter, a plan to sell treasury shares, and amendments to the plan to issue Employee Stock Ownership Plan (ESOP) shares.

Under its proposals, the HDBank headquarters will be moved from 25bis Nguyen Thi Minh Khai street, Sai Gon ward, Ho Chi Minh City to Saigon Marina International Financial Center (Saigon Marina IFC) at No. 2 Ton Duc Thang street, Sai Gon ward.

The number of treasury shares to be sold is 15,081,522, equivalent to 0.43% of its total shares, with a total par value of over VND150.81 billion ($5.74 million).

The sale is expected to be done in 2025. The bank plans to raise its charter capital from VND35.1 trillion to VND38.59 trillion ($1.47 billion) from issuing shares to convert convertible bonds.

The moves are parts of HDBank’s long-term strategy that aims to enhance the lender's financial capacity, optimize the ownership structure, and increase its attractiveness to both domestic and foreign strategic investors, a bank representative stated.

They are also to supplement capital sources and reflect the bank’s forward-looking vision and proactive preparation for a new phase of development, with a focus on sustainable and efficient growth, he added.

The shareholders participating in this round of bond-to-share conversion are reputable investors who prioritize HDBank's interests and are committed to long-term collaboration.

Their presence is expected to help stabilize the shareholder base, bolster market confidence, and allow the leadership to concentrate on strategic goals.

By Q2/2025, HDBank ranked among the top five banks with profits exceeding VND10 trillion ($380.5 million), continuing its upward profit trajectory and improving financial safety indicators.

Its total consolidated assets reached VND784.1 trillion ($29.83 billion), a 25.6% increase year-over-year, with credit growth closely tied to asset quality.

The standalone non-performing loan (NPL) ratio regulated by the State Bank of Vietnam was well controlled at 1.78%, lower than the industry average.

Its consolidated pre-tax profit for Q2 reached VND4.71 trillion ($179.2 million), up 13.9% year-over-year, reflecting the effectiveness of risk management strategies and capital cost optimization.

HDBank also noted that the convertible share issuance in this round will benefit the bank and enhance long-term shareholder value. This move serves as a foundation for potential future strategic partnerships.

HDBank is listed on the Ho Chi Minh Stock Exchange as HDB, which hit its ceiling price of VND30,950 ($1.18) per share on Thursday.