BIDV Securities Company (BSC) to issue over 65.73 million shares to Hana Financial Investment

The deal will be an important financial resource for BSC in promoting business activities, digital transformation and developing financial services and an investment banking ecosystem. — Photo courtesy of the firm

The Board of Directors of BIDV Securities Company (BSC) has approved issuing 65.73 million stocks as private placement to Hana Financial Investment Co Ltd (HFI).

With the stock purchase, under Resolution No 223/NQ-BSC, HFI will hold a 35 per cent BSC’s stake. The total value of the transaction is approximately VND2.7 trillion (US$118.3 million). Surplus equity is equal to VND2 trillion, equivalent to 1.6 times the charter capital of BSC. This is an important financial resource for BSC to promote business activities, invest in information technology, digital transformation, and develop a financial service and investment banking ecosystem.

HFI invests in BSC as a strategic investor, committing to long-term companionship with support and co-operation in business development and corporate governance.

BSC was established on November 26, 1999. Together with the development of the securities market, BSC always maintains a pioneering position in providing innovative financial products and services. BSC constantly expands and develops its business with the head office in Ha Noi and a branch in HCM City and a nationwide customer support network.

HFI is a member of Hana Financial Group - one of the top three financial groups in South Korea, and ranked 71st in the list of Top 1000 largest banks and financial groups in the world by The Banker in 2021.

HFI was established in 1968 and is an unsurpassed leader in asset management with many industry firsts, including South Korea’s first investment trust service and investment fund. It became a mega-size investment bank (IB) after two paid in capital increases, in 2018 and 2020, bringing capital up to KRW4.0 trillion ($3.3 million), performing a leading role in the group’s IB business. As of December 31, 2020, HFI has an extensive network including 57 branches in South Korea and one office abroad, with total assets of $28.4 million and equity of $3.6 million.

The cooperation between BSC - a securities company with more than two decades of operation - and HFI, a member of the leading financial group in South Korea, will support further development opportunities for BSC. BSC and HFI will carry out necessary procedures in accordance with the laws of the two countries to complete the above transaction. — VNS