The senior loan aims to support the TPBank to expand lending to small and medium enterprises and retail clients via its digital channels, IFC said in a disclosure on April 24.
IFC to extend financing facility to TPBank.
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The Vietnamese lender expects its market capitalization to rise to least US$1 billion in the fourth quarter after its scheduled listing this month, according to Chairman Do Minh Phu. It plans to sell about a 15% stake to investors via a private placement and issue 28% of dividend and bonus shares during the last three months of the year.
TPBank expects to raise its registered capital to VND8.5 trillion (US$372 million), up from VND5.84 trillion (US$256.9 million), this year through the shares issuances.
The lender listed 555 million shares at an initial price of VND32,000 (US$1.41) on April 19 on the Ho Chi Minh City Stock Exchange, which valued the lender at about US$781 million.
IFC is a TPBank shareholder with 5% stake ownership after it invested over VND403 billion (US$18.35 million) in the bank in 2016. Other shareholders of TPBank include: FPT Corporation (8.68%), DOJI Gold and Gems Group (7.60%), Vietnam National Reinsurance Corporation (VinaRe) (5.14%), SBI Ven Holdings (4.61%).
Last year, the Word Bank's private lending arm also agreed to provide Vietnam Prosperity Joint Stock Commercial Bank (VPBank) with a US$57 million convertible loan. The terms entitle IFC to convert the loan to VPBank's common shares within the two-year loan term.
In 2017, TPBank has exceeded its financial targets set by the shareholders with profit at VND1.2 trillion (US$52.5 million), 155% higher than the year plan. Its total assets worth over VND124 trillion (US$5.43 billion), while bad debt is kept at 1.08%
TPBank set pre-tax profit in 2018 of VND2.2 trillion (US$96.2 million), up 82.42% compared to 2017, said in the bank`s document prepared for annual general meeting.
