Joint Stock Commercial Bank for Foreign Trade of Vietnam, commonly known as Vietcombank, has raised $265m through share sale to Singapore’s state investor GIC and Japan’s Mizuho Bank.
The move is aimed at creating additional buffer and meet capital requirements under Basel II Accord.
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Vietcombank capital raising: Details
The lender sold 94.44 million new shares to Singapore’s GIC, which now owns 2.55% stake in Vietcombank.
Japanese financial services provider Mizuho Bank bought additional 16.67 million Vietcombank shares to maintain its 15% stake in the company.
Vietcombank Board of Directors chairman Nghiem Xuan Thanh said: “This transaction not only represents an important milestone for the new co-operation between GIC and Vietcombank, but also the continued and committed support from our existing partnership with Mizuho.
“This successful equity raising transaction supports Vietcombank’s strong momentum and performance to achieve our goals.”
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By GlobalDataThe investment bolsters Vietcombank’s charter capital to VND37.1 trillion (around $1.6bn).
Credit Suisse served as the placement agent and financial advisor to Vietcombank for the deal, while YKVN, Vilaf and Allen & Overy acted as the legal advisors.
Credit Suisse Asia Pacific CEO Helman Sitohang said: “We are delighted to work with Vietcombank to bring in new capital and another strong shareholder partner like GIC, having successfully advised Vietcombank on its previous strategic sale to Mizuho.
“This transaction demonstrates continued international investor interest in Vietnam.”
