HO CHI MINH CITY, VIETNAM - Media OutReach - 25 September 2020 - The Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank - HoSE: HDB) today announced the signing of an agreement to issue convertible bonds and enter into a strategic tie-up with DEG - DEUTSCHE INVESTITIONS- UND ENTWICKLUNGSGESELLSCHAFT MBH ("DEG").

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 Vietnam and Vietnamese exporters to Germany and Europe, contributing to boost the trade cooperation between Vietnam and Germany as well as with other European countries.

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 EUR8.6 billion in private groups around the world. In Vietnam, DEG has been active for almost 20 years with a portfolio of EUR220 million.

Jochen Steinbuch, its regional manager in the Asia Pacific, said: "Vietnam 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 a expanding middle class, demand for banking and financial services is high."

"HDBank is one of the leading joint stock banks in Vietnam, 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 EVFTA took effect recently.

About HDBank:

Ho Chi Minh City Development JSC Bank (HDBank, HOSE:HDB) was established in 1990, making it among the first commercial banks in Vietnam.

After 30 years of operations, HDBank is now one of the leading banks in Vietnam. It has strong finances and modern technology, and provides a wide range of financial services to individuals, corporates and investors.