Vietcombank permitted to raise capital to 2.3 billion USD

Transactions at Vietcombank. (Photo courtesy of the bank)

Hanoi (VNS/VNA) - The State Bank of Vietnam (SBV)just allowed the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank)to raise its charter capital from 47 trillion VND (2 billion USD) to 55trillion VND (2.3 billion USD) by issuing shares to pay dividends from theremaining profits of 2019 and 2020.

Previously, the bank’s 2022 Annual General Meeting of Shareholdersapproved the issuance of 856.5 million dividend stocks at a rate of 18.1%. 

Once the issuance is completed, its charter capital will increaseby nearly 8.6 trillion VND to more than 55.89 trillion VND, thereby surpassingVietinbank and BIDV to become the second largest bank, after VPBank. 

Vietcombank said that the mobilised capital will be spent onexpanding the business scale to meet the economy’s requirements, and investingin improving management and operation plans. 

The bank also plans to issue a maximum of nearly 2.8 billionshares to pay dividends from the remaining profit of 2021 and the remainingprofit accumulated until the end of 2018, which will boost its charter capitalup to 27.6 trillion VND.

The proposal is accepted by the SBV and the Ministry of Finance,and is about to submit to the National Assembly’s approval, according to PhamQuang Dung, Chairman of the Board Director of Vietcombank./.

VNA