The agreement surpasses the VND20 trillion ($850 million) acquisition of a 15% stake in BIDV from KEB Hana Bank (South Korea) in 2019, setting a new record in the banking industry.
VPBank announced that it has completed the sale of a 15% equity interest to Sumitomo Mitsui Banking Corp. of Japan, a member of Sumitomo Mitsui Financial Group, in a transaction valued at $1.5 billion.
CEO of SMBC Masahiro Yoshimura and Chairman of the Board of Directors at VPBank Nguyen Chi Dung at the signing ceremony today. Photo: VPBank |
SMBC Group's latest deal with VPBank makes the former a new strategic investor in the latter.
The agreement sets a new banking industry record, with a deal value of VND35.9 trillion ($1.5 billion), surpassing the VND20 trillion ($850 million) acquisition of a 15% stake in BIDV from South Korea's KEB Hana Bank in 2019.
The investment is expected to increase VPBank's total capital from VND103.5 trillion ($4.4 billion) to around VND140 trillion ($5.95 billion), positioning VPBank as the second largest bank in the industry after Vietcombank.
In order to strengthen its financial capacity and achieve its growth target over the next five years, VPBank has been implementing a capital increase plan since 2022. The capital increase will not only improve the Capital Adequacy Ratio (CAR), but will also expand the lending limits to individual customers or groups.
SMBC's strategic investment in VPBank is expected to attract FDI and encourage multinationals and large enterprises to explore and expand investment in Vietnam.
The partnership is also expected to accelerate digital transformation, as SMBC will contribute to VPBank's growth by sharing its knowledge and experience in various Asian markets.
SMBC and VPBank are not new partners, as in early 2021, SMBC Consumer Finance acquired a 49% stake in FE Credit, a subsidiary of VPBank, for $1.37 billion.
Although a strategic shareholder of Eximbank since 2007, SMBC reduced its stake to 4.27% due to unresolved disputes.
Other News
- 3,400 taels of gold purchased at the first-in-11-year auction
- HoSE to launch KRX-developed transaction system in early May
- Central bank moves gold auction to tomorrow
- Vietnam’s c.bank sells USD to stabilize exchange rate
- Central bank to auction gold to calm domestic market
- Vietnam's Central Bank ready to steady foreign exchange market
- Finance ministry clears bottlenecks to pave way for stock market upgrade
- Over 60% of Vietnamese use QR codes to pay
- Casinos contribute US$370 million to state budget over 5 years
- Standard Chartered and IATA partner to launch IATA Pay in Vietnam
Trending
-
Hanoi flowers on postage stamps
-
French market awaits Vietnamese green, sustainable businesses
-
Tech giants pay nearly US$580 million in taxes in Vietnam
-
Carnaval Ha Long 2024 woos tourists with fireworks and drone light shows
-
Affordable, quality tours offered at Hanoi Tourism Festival 2024
-
Introduction of community tourism area in Hanoi herb kingdom
-
Capital Law revision helps Hanoi promote role as nation’s socio-economic hub
-
IT training urged to focus on semiconductors
-
Voluntary social security should cover larger part of informal sector: Experts