DCM-HDBank ConvDebt (IFC-42030)

Countries
  • Vietnam
Geographic location where the impacts of the investment may be experienced.
Specific Location
Ho Chi Minh City and nationwide
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Active
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
FI
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Dec 20, 2021
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
HO CHI MINH CITY DEVELOPMENTJOINT STOCK COMMERCIAL BANK
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Amount (USD)
$ 28.50 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 28.50 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 95.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Campaign Documents
Primary Source

Original disclosure @ IFC website

Updated in EWS May 15, 2024

Disclosed by Bank Dec 22, 2021

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the bank's website, "the proposed project entails an investment of up to US$95 million by IFC and IFC Asset Management Company (AMC) in a five-year and 1 day Basel II compliant US$ denominated Convertible Tier II Bond issued by Ho Chi Minh City Development Joint Stock Commercial Bank (‘HDBank’ or the ‘Bank’). The investment is aimed at strengthening the Bank’s capital and support increased lending to retail and SME segments including women-owned SMEs (WSMEs)."

People Affected By This Project
People Affected By This Project refers to the communities of people likely to be affected positively or negatively by a project.

The project is expected to (i) increase access to finance for individuals and SMEs, including WSMEs through both traditional banking and digital platforms and (ii) contribute to market resilience in the Vietnam banking sector by sending a positive signal and boosting investor confidence thus enabling local banks to attract investment needed to build their capital positions and sustain their growth.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

According to the IFC, the proposed project entails an investment of up to US$95 million in a five-year and 1 day Basel II compliant US$ denominated Convertible Tier II Bond. The Bank is targeting to raise up to US$200 million through this privately placed issuance with the balance expected to be raised from international investors. The investment is aimed at strengthening the Bank’s capital and support increased lending to retail and SME segments including women-owned SMEs (WSMEs).

Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

According to the IFC, HDBank, the eighth largest private bank in Vietnam, offers a wide variety of financial services with a focus on retail and SME segments serving about 12 million customers. As of end of September 2021, the Bank had an asset base of US$15 billion representing a market share of about 2% in Vietnam banking sector.

It is listed on the Ho Chi Minh City Stock Exchange with a market capitalization of US$2.8 billion as of 01 December 2021. Sovico Group, one of Vietnam’s largest and reputable conglomerates operating in aviation, banking and finance, energy, hospitality and real estate sectors, is HDBank’s largest shareholder with an equity stake of around 14.5% (via Sovico Group’s subsidiary, Sovico Holdings). Madam Nguyen Thi Phuong Thao, Sovico Group’s main sponsor, is the largest ultimate beneficial owner of the Bank as of 30 September 2021. The rest of the shareholding structure is diversified with over 18 thousand local and foreign shareholders, each with less than 5% equity stake. Institutional investors hold over 60% shareholding while the balance is held by individual investors.


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Mr. Pham Quoc Thanh
Chief Executive Officer, Ho Chi Minh City Development Joint Stock Commercial Bank
+84903699990
thanh.pq@hdbank.com.vn
25Bis Nguyen Thi Minh Khai, District I, City. Ho Chi Minh
https://www.hdbank.com.vn/en/

 

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org

How it works

How it works