Transactions at BIDV (Photo: cafef.vn)Hanoi (VNA) – The Bank forInvestment and Development of Vietnam (BIDV) will float more than 603 million newshares, or 15 percent of its stake to the Republic of Korea’s KEB Hana Bankunder its resolution No.696/NQ-BIDV issued on July 22.
The deal will help BIDV increase its charter capital by more than 20.29trillion VND (873.6 million USD).
Both banks will continue processing required procedures to complete their dealsoon.
BIDV, among Vietnam’s leading lenders by assets, has 1.37 quadrillion VND intotal assets. In the first nine months of the year, it made such achievements asbeing in Global 2,000 list by Forbes-an annual ranking of the world’s biggestand most powerful public company, and having credit rating upgraded one notchfrom B to BB- by the global ratings agency Standard & Poor’s.
As for KEB Hana Bank, it is a member of the Hana Financial Group - one of thelargest financial corporations in Asia. Besides a strong domestic network, thebank has set up 144 transaction points in 24 countries across the world. As ofJune 30, KEB Hana Bank’s total assets worth 308.3 billion USD. Last year, itwas recognised as the best retail bank in the RoK.
Acquiring BIDV’s shares will help the Korean bank expand its presence in theSoutheast Asian country, whose economic performance has been stellar for yearswith many Korean companies venturing into the nation.
According to Vietnamese regulations,foreign ownership ratio at Vietnamese banks is capped at 30 percent of chartercapital. The State currently owns 95.28 percent of BIDV stake. After the sharesale to KEB Hana Bank, the State ownership will be reduced to 80.28 percent. -VNA
VNA
