An Binh Commercial Joint Stock Bank (ABBANK) has issued nearly 11.43 million shares at VND13,000 per share under an employee stock ownership plan.

The ESOP is equivalent to 2 per cent of the lender’s charter capital.

Employees meeting certain criteria in terms of work efficiency, position and seniority have the right to buy the shares.

The shares cannot be sold for one year from the closing date of the offering.

ABBANK is also offering 114.26 million shares to existing shareholders at a price of VND10,000, equivalent to 20 per cent of charter capital.

After completing the issuance to shareholders and employees, it plans to issue bonus shares at a rate of 35 per cent by capitalising undistributed profits and the reserve fund of nearly VND2.44 trillion (US$106.28 million).

Its charter capital will go up to nearly VND10 trillion ($436.05 million) when the transactions are completed.

ABBANK is also preparing to change its listing from UPCoM to either Ha Noi and HCM City.

The bank will use the proceeds to supplement working capital, expand in line with its five-year strategic plan for 2021-25 and invest in developing information technology and digital platforms.

Dao Manh Khang, chairman of ABBANK, said, "Issuing ESOP shares is meaningful as a remuneration policy to recognise employees’ contributions." VNS