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Deutsche Bank buys 10% stake of Vietnamese bank

Deutsche Bank has purchased 10% stake of the Hanoi Housing Joint Stock Commercial Bank (Habubank), local newspaper Vietnam News reported Tuesday.

The German bank’s purchase has helped raise Habubank’s chartered capital to 1.4 trillion Vietnamese dong ($87.5 million) from 1.26 trillion VND (nearly $78.8 million). According to their recent strategic partnership deal, Deutsche Bank and Habubank will cooperate in supplying technical support and expertise in treasury and risk management, and seeking business opportunities in the fields of credit cards and investment products.

Under a decree issued by the Vietnamese government in April, a single foreign strategic investor can hold up to 15% stake in a Vietnamese bank, up from 10% previously. The decree leaves open the opportunity for the government to raise the limit to 20% on a case by case basis, but it still maintains the total foreign ownership cap at 30%. (people.com.cn)