BIDV to add VND5.19 trillion to its capital
BIDV to add VND5.19 trillion to its capital
Bank for Investment and Development of Vietnam, or BIDV, has plans to inject over VND5.19 trillion into its charter capital this year by paying stock dividend and selling shares to existing shareholders.
BIDV expects to spur its capital to VND28.2 trillion by the end of the year against the current level of VND23 trillion.
To realize this target, the bank will issue 519.3 million shares in the second quarter, including 113.5 million shares to pay a 2012 dividend at a 4.93-for-100 ratio while 405.8 million shares will be sold to existing shareholders at VND10,000 each.
The plan to spur capital was approved at the bank’s annual general meeting this year, using retained earnings of over VND1.1 trillion and over VND4 trillion earned from offering call options to existing shareholders.
According to BIDV’s board of directors, the plan aims to raise the bank’s operation capability, meet development demands and ensure safety criteria as required.
This capital increase will reduce EPS (earnings per share) of the bank by 10%. The State currently holds a 95.76% stake in BIDV.
In related news, BIDV and TienPhong Bank on Wednesday signed an agreement on comprehensive cooperation to build a systematical cooperative mechanism for both sides in the 2013-2015 period.
Both parties will cooperate in many fields such as capital source, international and domestic payment, cash management, retail banking and gold trading. They will also join hands to launch services for the high-tech industry, IT (information technology) projects, supporting industries and non-life insurance business.
On the other hand, TienPhong Bank, given the support of its strategic shareholder DOJI Gold and Gemstone Group, pledged to share experience and provide services for BIDV in the gold business.
The two sides committed to create favorable conditions for each other in gold trading and related products and services.
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