State Bank of Viet Nam (SBV) has allowed Petrolimex Group Commercial Joint Stock Bank (PG Bank) to raise its charter capital from VND3 trillion (US$132 million) to VND3.165 trillion.

The capital can be increased by issuing shares to distribute dividends among shareholders from unallocated after-tax profits.

The plan to increase the charter capital was approved at the Annual General Meeting through Resolution 02/2017/NQ-DHDCD-PGB, dated October 17, 2017.

The issuance volume is 16.5 million shares corresponding to the exercise ratio of 5.5 per cent. Shareholders will not be allowed to transfer this right; the shares will be freely transferable after being issued.

According to PGBank, the increasing charter capital will be used to invest in infrastructure and modernising banking technology (VND65 billion) and expanding the scale of lending (VND100 billion).

SBV requires PG Bank to implement the raising of charter capital in line with the law, including compliance with shareholding limits of shareholders as stipulated in the Law on Credit Institutions and guiding documents of SBV after increasing charter capital.

After completion of procedures for issuing shares to increase the charter capital, PGBank will be responsible for submitting the application for amendment of charter capital in the licence to SBV (through the Banking Inspection and Supervision Agency). — VNS