ABBANK starts the second phase of capital hike by issuing bonus shares to existing shareholders at a rate of 35 per cent. — Photo courtesy of the bank

An Binh Commercial Joint Stock Bank plans to further increase its capital by issuing bonus shares to existing shareholders at a rate of 35 per cent.

It will use undistributed profits of VND2.26 trillion and VND183.4 billion from its additional charter capital reserve fund to issue nearly 243.95 million ordinary shares.

This will be its second phase of capital enhancement after recently issuing 114.26 million shares to existing shareholders at a rate of 20 per cent, and another 11.43 million shares to employees under an ESOP scheme to increase its capital from VND 5.7 trillion (US$250.4 million) to nearly VND6.97 trillion ($306.46 million).

After the second phase its capital is expected to increase to nearly VND10 trillion ($439.2 million).

The lender is also preparing to switch the listing of its ABB stock from UPCoM to the Ha Noi or Ho Chi Minh stock exchanges.

Dao Manh Khang, its chairman, said the bank would use the capitalised money to supplement working capital and serve its expansion needs as laid out in its five-year strategic plans, including investment in developing information technology to improve its competitiveness.

In the second and third quarters Moody's Investors Service rated ABBANK’s long-term local and foreign currency deposit and issuer ratings at B1 with a stable outlook. — VNS