Jan 28, 2019 / 11:13

Vietcombank sells 3% stake to Mizuho Bank, GIC

The Hanoitimes - The increase in Vietcombank`s charter capital was funded by issuing shares to Japan’s Mizuho Bank and Singapore’s sovereign wealth fund GIC.

State-run Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) has increased its charter capital to VDN37.1 trillion (US$1.6 billion) by selling a combined 3% stake in private placement to Mizuho Bank and GIC, stated the lender. 
Illustrative photo.
Illustrative photo.
Specifically, Mizuho Bank – the largest foreign shareholder of Vietcombank, purchased an additional of 16.66 million shares so that the Japanese bank can maintain its stake holding of 15% at the Vietnamese lender. GIC also acquired 94.44 million shares to hold a 2.55% stake at Vietcombank. 

This resulted in a 3% increase in the bank’s charter capital. 

On December 28, 2018, the State Bank of Vietnam (SBV) tuned a green light for Vietcombank, the country’s largest bank by market value, to increase its charter capital by issuing shares to Singaporean sovereign wealth fund GIC and Japan’s Mizuho Bank.

Last October, Vietcombank submitted a proposal to State Securities Commission for the offering of a maximum of 10% stake or 360 million shares to foreign investors. 

With the sale, Vietcombank expects to increase its charter capital by VND3.6 trillion (US$153.4 million) to VND39.5 trillion (US$1.7 billion). 

Of the sum, the Hanoi-based lender would offer 53.9 million shares to Mizuho Bank, which is entitled to buy more shares, and another 305.8 million shares or 7.73% stake to other foreign investors through private placements.