SHB completes share issuance to raise charter capital to US$650.5 million

Saturday, May 09, 2020 07:40

The charter capital raising would be a foundation for the bank to complete all requirements of Basel II. — Photo SHB

Sai Gon – Ha Noi Joint Stock Commercial Bank (SHB) has successfully issued more than 500 million shares, increasing its chartered capital to VND17.5 trillion (US$750.5 million).

The bank has received approval from the State Bank of Viet Nam and State Securities Commission of Viet Nam for the share issuance. SHB successfully offered nearly 300.8 million shares from February 17 to April 27. In the first quarter of this year, it also issued more than 251 million shares to pay dividends at the rate of 20.9 per cent for 2017 and 2018.

According to SHB, the increase of charter capital has been under its development plan which was approved at the annual general meeting of shareholders in 2019. SHB dividends in 2019 were approved at the rate of 11 per cent. It will pay to shareholders at the latest in the third quarter of 2020 in accordance with the regulations of the central bank.

The charter capital increase is expected to help the bank enhance its financial ability, management and competition in the process of international economic integration. It will also facilitate to expand its network, investing in technologies and diversifying products and services to better meet customers’ demand both inside and outside the country. In addition, the capital raising would be a foundation for the bank to complete all requirements of Basel II.

SHB said it would officially complete all three pillars of Basel II this year by completing the final components of the Internal capital adequacy assessment processes (ICAAP) framework.

Earlier, the bank completed divestment at SHB Finance Company (SHBFC) for a big foreign strategic partner. The divestment would contribute to improving its financial ability. — VNS

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