Vietinbank targets capital of over $1.7b
Vietinbank targets capital of over $1.7b
Vietinbank (CTG) said it will increase its capital to more than VND37.23 trillion (over US$1.7 billion) by the third quarter.
Vietinbank's charter capital as of June 30 was VND32.66 trillion ($1.5 billion).
The bank will carry out dividend payment in cash at the rate of 16 per cent of the charter capital for 2012 prior to the issuance of additional shares to strategic shareholder Bank of Tokyo Mitsubishi UFJ Ldt (BTMU). BTMU will not receive cash dividends for the fiscal year of 2012.
In addition, Vietinbank will issue shares at par value to existing shareholders at a rate of 14 per cent of the charter capital (including the issuance to BTMU).
In the plan to increase capital, BTMU will buy more shares to maintain its percentage of ownership in VietinBank.
After Vietinbank finalises its plan to raise its charter capital, State shareholders will hold 64.46 per cent, equivalent to around VND24 trillion ($1.14 billion); BTMU will hold 19.73 per cent, equivalent to nearly VND7.35 trillion ($346.6 million); and other shareholders will hold 15.81 per cent, or over VND5.88 trillion ($277.3 million).
VietinBank expects to use the additional funding to improve credit, expand its network and invest in technology, new facilities and services while also boosting mergers and aquisitions.
"Increasing capital is the base for our bank to enhance its financial capacity, maintain high growth and create more benefits for shareholders," said Vietinbank chairman Pham Huy Hung.
During the meeting, Vietinbank also selected two new members of the board: BTMU's Asia and Oceania director Go Watanabe and corporate client director Hiroyuki Nagata.
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