Vietcombank permitted to raise capital to $2.3 billion

Monday, Jun 05, 2023 08:28

Transactions at Vietcombank. — Photo courtesy of the bank

The State Bank of Viet Nam (SBV) just allowed Vietcombank to raise its charter capital from VND47 trillion (US$2 billion) to VND55 trillion ($2.3 billion) by issuing shares to pay dividends from the remaining profits of 2019 and 2020.

Previously, the bank’s 2022 Annual General Meeting of Shareholders approved the issuance of 856.5 million dividend stocks at a rate of 18.1 per cent.

Once the issuance is completed, its charter capital will increase by nearly VND8.6 trillion to more than VND55.89 trillion, thereby surpassing Vietinbank and BIDV to become the second largest bank, after VPbank.

Vietcombank said that the mobilised capital will be spent on expanding the business scale to meet the economy’s requirements, and investing in improving management and operation plans.

The bank also plans to issue a maximum of nearly 2.8 billion shares to pay dividends from the remaining profit of 2021 and the remaining profit accumulated until the end of 2018, which will boost its charter capital up to VND27.6 trillion.

The proposal is accepted by SBV and the Ministry of Finance, and is about to submit to the National Assembly’s approval, according to Pham Quang Dung, Chairman of the Board Director of Vietcombank. — VNS

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