BCEL privatisation raises US$19.2m
BCEL privatisation raises US$19.2m
The Lao government has received about 154 billion kip (US$19.2 million) from selling 20 percent of Banque pour le Commerce Exterieur Lao (BCEL) to domestic investors, according to a senior bank official.
Ms Viengthong Siphandone and Managing Director of BCEL Mr Sonexay Sithphaxay preside over the inaugural BCEL shareholder meeting in Vientiane yesterday.
BCEL Privatisation Com-mittee Head Mr Phouthaxay Sivilay announced yesterday the government had sold 15 percent of its ownership in BCEL to domestic investors, receiving about 120 billion kip, and 5 percent to staff of the commercial bank, receiving about 34 billion kip.
The government also plans to sell a further 20 percent of the bank to strategic business partners through a negotiation process, he said, adding that the move is one of the government's policies to allow the private sector to take part in the development of the bank.
The government will continue to hold the majority of shares in BCEL, giving it the power to oversee management of the iconic state bank.
Mr Phouthaxay, who is also Director General of the Bank of the Lao PDR's Banking Supervision Department, made the announcement at the first BCEL shareholder meeting.
Deputy Minister of Finance Ms Vienthong Siphandone expressed thanks to the domestic investors who purchased shares in the previously wholly state-owned bank, saying that the investors have now become partners in the bank with the government.
BCEL offered shares to domestic investors through a bidding process in mid-December.
According to the Lane Xang Securities Public Company, which provided underwriting services for BCEL, about 420 investors subscribed for shares but only 372 won the auction to own stock in the bank.
The lowest priced bid for a share was 5,500 kip and highest 50,000 kip. The underwriter has returned money to investors who failed to win shares in the auction, as well as the bidder who offered 50,000 kip per share because it considered the price unrealistic.
Many people decided to invest in BCEL due to the bank's stable, profitable business operations over the past several years.
The bank is the largest commercial bank in Laos, holding a 40 percent share of the banking market.
According to BCEL's 2011 business plan, which was approved at the shareholders meeting yesterday, the bank will develop new services to enable it to attract more customers and ensure the sustainable operation of the bank.
Major projects the bank will undertake include a bill payment system to enable people to pay electricity and water bills through ATMs, and a banking self-service system to allow customers to make deposits and withdrawals themselves. The bank will also develop its private and corporate banking arms.
Vientiane Times
