Vietcombank plans to raise charter capital via share issuance
Vietcombank plans to raise charter capital via share issuance
The Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) plans to increase its charter capital for the 2020-2021 period by paying dividends in shares and issuing additional shares, according to documents of the upcoming annual shareholders’ meeting scheduled for June 26.
Illustrative image (Photo: VNA)
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Investors will receive a maximum of 18 shares for every 100 they currently hold.
The bank’s charter capital will increase to over 43.7 trillion VND (1.9 billion USD) under the plan.
Meanwhile, the second plan is to issue 241 million new shares, or 6.5 percent of the bank’s total charter capital, of which 204.9 million will be offered to investors.
Its strategic investor, Japan’s Mizuho Bank, will still hold at least 15 percent of shares.
If successful, the lender could increase its charter capital to almost 39.5 trillion VND.
If Mizuho is to purchase more shares and increase its ownership to 20 percent, it would be eligible to appoint one more member to Vietcombank’s board of directors if permitted to do so by the State Bank of Vietnam.
The plan is expected to push Vietcombank’s capital adequacy ratio to over 9 percent while its return on average equity will be around 22 percent.
