An ABBANK transation office. The bank gets central bank green light to hike charter capital to VND9.4 trillion (US$409.96 million). — Photo courtesy of the bank

An Binh Commercial Joint Stock Bank (ABBANK) will issue more than 369.6 million ordinary shares this year to increase its charter capital by over VND3.69 trillion to VND9.4 trillion (US$409.96 million).

The proposal has been approved by the State Bank of Vietnam.

The issuance will be divided into two phases.

In the first, it will issue 114.26 million shares to existing shareholders at VND10,000 per share at a rate of 20 per cent, and another 11.43 million to employees under an ESOP scheme.

In the second, it will issue bonus shares to existing shareholders by capitalising undistributed profits of VND2.26 trillion and VND183.4 billion from additional chartered capital reserve fund. They will add up to nearly 243.95 million shares.

Dao Manh Khang, the lender’s chairman, said: “Through this capital increase, ABBANK's financial potential will be strengthened to serve the needs of its business expansion and it will invest in key projects, including digital applications, to improve its competitiveness.

“The consensus among shareholders to increase the charter capital, including the issuance of bonus shares instead of cash dividends, shows their trust in ABBANK's development potential.”

The bank’s pre-tax profits went up by 85 per cent in the first half to VND1.16 trillion ($50.4 million). — VNS