Capital bank to mobilize funds off dollar certificates
The unlisted Hanoi Building Bank, or Habubank, has issued its certificate of deposit (CDs) in US dollar for both clients and investors, aiming to mobilize US$30 million.
The CDs come with a face value of $100 at least and a maximum of $100,000 for both individuals and institutions.
The CD carries an annual interest rate of 4.9 percent – 5 percent for CDs of five-month term; and 5.1 percent – 5.2 percent for CDs of 11-month terms.
The issue is to last from March 26 until May 25, however it might close before the schedule if sufficient funds are mobilized in advance.
Potentials
Established in 1989, the joint-stock bank has total assets of VND12 trillion ($748 million).
Germany’s top bank Deutsche Bank is now waiting for the approval from the Vietnamese central bank to buy up to a 20 percent stake in Habubank.
The two banks had clinched a deal for the purpose since last month. No financial details were disclosed.
The two banks plans to sign a cooperative agreement, following which Deutsche Bank will seek cooperation in credit card development and banking services distribution.
Deutsche Bank would also assist Habubank in managing financial sources and banking business risk.
It expected to become the largest shareholder of the Vietnamese bank.
Deutsche Bank is known as a leading bank in both homeland and the EU developing network to worldwide 72 countries.
It has opened its branches in Vietnam since 1992.
Under Vietnam’s current banking regulations, a single foreign investor is eligible to own a maximum 10 percent stake in a commercial bank, and total foreign holdings are capped at 30 percent.
Habubank has recently acquired a 5 percent stake in Cavico Mining’s VND31 billion ($1.9 million) chartered capital - a mining arm of Cavico Corp., Vietnam’s leading infrastructure investor and contractor, and specializing in providing mining and construction equipment.
The acquisition came part of the bank’s long-term strategy to diversify its business activities and strengthen its financial capability.
Habubank was one of Cavico’s main lenders before becoming a shareholder.
Source: TBKTVN – Compiled by Dong Ha
