According to the document for the 2020 Annual Shareholder Meeting (AGM) of HCM City Development Commercial Joint Stock Bank (HDBank, HoSE: HDB), the bank will propose a plan to increase charter capital by 33 percent to 305.372 trillion dong, total mobilisation by 35 percent to 275.246 trillion dong, and outstanding credit by 16 percent to 177.970 trillion dong according to the target set by the State Bank of Vietnam (SBV). The bank aims to control bad debt ratio below two percent. The pre-tax profit target in 2020 of HDBank is set at 5.661 trillion dong, up by 13%.
In 2019, HDBank recorded nearly 3.605 trillion dong of after-tax profit of shareholders’ ownership, raising the accumulated profit of 5.577 trillion dong.
For the upcoming AGM, the bank’s Board of directors (BOD) submits shareholders a plan to pay dividends at a ratio of 50%, and issue bonus shares from share surplus capital at a ratio of 15%.
A plan to issue a maximum of one billion US dollars of bonds in one or more times, and authorise the BOD to decide the value of each issuance is also proposed. The term of the bonds is minimum three years and maximum 10 years from the date of issuance. The bonds’ interest rate can be fixed or not, the method of paying bond principal and interest rate is decided by the BOD.
Bonds will be issued in the form of book-making or other forms which are suitable to international market practices for investors outside the US, and listed at the Singapore Stock Exchange.
In addition, shareholders will consider the proposal to issue up to 500 million US dollars or 10 trillion dong of convertible bonds (can be converted into ordinary shares, bonds without collateral and without warrants). Bonds are issued on international or Vietnamese markets, decided by the BOD. The bond issuance(s) will be carried out in 2020 and/or in 2021.
HDBank’s AGM will be held on June 13th.
