A view of the strategic partnership signing ceremony between HDBank and DEG in HCM City on Friday. — Photo courtesy of HDBank

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. — VNS