South Korean lender KEB Hana Bank has agreed to take a 15% stake in Bank for Investment and Development of Vietnam (BIDV) for KRW1.03 trillion ($874m).
The transaction will involve the issuance of 603.3 million stocks by BIDV.
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At present, Vietnam’s central bank owns a 95.3% stake in BIDV.
Upon completion of the latest deal, state holding in BIDV will get diluted to over 80%.
South Korea and Vietnam have been trading partners for a long period.
The latest investment is said to be the largest made by a South Korean lender in Vietnam.
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By GlobalData“BIDV and KEB Hana Bank will carry out required procedures in accordance with laws of the two countries to finalise the deal soon,” BIDV stated.
KEB Hana Bank is a unit of Hana Financial Group.
The bank was created in 2015 following the merger of Korea Exchange Bank (KEB) and Hana Bank.
Currently, KEB Hana Bank has 144 transaction points in 24 countries across Asia – Pacific, Europe, the Middle East, and America.
In Vietnam, the bank has a presence in Hanoi and Ho Chi Minh.
Meanwhile, BIDV is the largest lender in Vietnam by assets. Set up in 1957, it has more than 1,000 branches.
Apart from banking, BIDV offers insurance, securities, as well as financial investment services.
