Techcombank to issue over 21 million ESOP shares to boost charter capital

Techcombank to issue over 21 million ESOP shares to boost charter capital

The total issuance value is estimated at VNĐ214 billion, which will raise Techcombank’s charter capital from VNĐ70.649 trillion to approximately VNĐ70.862 trillion.

Transactions at Techcombank. Nearly 21.4 million ESOP shares of Techcombank will be issued, including 6.6 million for foreign employees and 14.8 million for domestic staff. — Photo courtesy of Techcombank

Techcombank has approved a plan to issue more than 21 million shares under its Employee Stock Ownership Plan (ESOP) at a price of VNĐ10,000 per share - close to one-third of the current market price.

The move, endorsed by the bank’s Board of Directors on May 19, aims to increase charter capital and enhance long-term funding capacity for credit and business development.

According to the resolution, nearly 21.4 million ESOP shares will be issued, including 6.6 million for foreign employees and 14.8 million for domestic staff. The issuance represents approximately 0.3 per cent of the bank’s total outstanding shares. With Techcombank’s share price trading around VNĐ29,500 as of May 19, the offering price reflects a significant discount of nearly 195 per cent to the market rate.

The total issuance value is estimated at VNĐ214 billion, (US$8.8 million) which will raise Techcombank’s charter capital from VNĐ70.649 trillion to approximately VNĐ70.862 trillion. Newly issued ESOP shares will be subject to a one-year lock-up period from the issuance date.

The proceeds from the offering will be used to strengthen the bank’s capital base, maintain a high capital adequacy ratio, and expand the availability of medium- and long-term funding. The issuance is expected to take place in the third or fourth quarter of 2025, pending approval from the State Securities Commission.

Techcombank has made ESOP issuance an annual practice as part of its long-term human capital strategy. In 2024, the bank issued nearly 20 million ESOP shares, following 5.3 million shares in 2023 and 6.3 million shares in 2022. Between 2018 and 2021, Techcombank also implemented ESOP offerings regularly to reward and retain key talent.

Despite a high base in Q1 2024, Techcombank recorded solid performance in the first quarter of 2025. Total operating income (TOI) reached VNĐ11.611 trillion, down 5.3 per cent year-on-year, while net interest income (NII) remained stable at VNĐ8.305 trillion, down only 2.3 per cent. The bank’s 12-month net interest margin (NIM) stayed firm at 4.0 per cent, with cost of capital efficiently managed at 3.4 per cent. As a result, pre-tax profit reached VNĐ7.236 trillion for the first three months.

As of March 31, 2025, Techcombank’s total assets stood at approximately VNĐ990 trillion, up 11.7 per cent from a year earlier. Total credit grew 3.84 per cent from the beginning of the year, bringing outstanding loans to VNĐ665.3 trillion. Retail lending surged by 26.6 per cent, while corporate lending rose 13 per cent, driven by capital flows into sectors such as utilities, telecommunications, real estate, logistics and fast-moving consumer goods (FMCG).

Techcombank continues to prioritise sustainable growth and human resource development, while maintaining prudent financial management and digital innovation. 

Bizhub