Sai Gon-Ha Noi Bank (SHB) will issue 100 million shares worth VND1 trillion (US$ 43.8 million) to shareholders under its merger plan with Vinaconex-Viettel Finance JSC (VVF), the bank announced in a statement on Monday.

The sale aims to convert all VVF shares into SHB shares at a 1:1 ratio and at a price of VND10,000 per share. SHB will restructure VVF to turn it into SHB Consumer Finance Co Ltd, operating in consumer credit.

According to SHB, the date on record for VFF’s shareholders to register to make the share swap is January 12, 2017. Following the merger, SHB’s chartered capital will be raised to nearly VND10.5 trillion.

SHB Consumer Finance Co Ltd will begin operations in early 2017, adding that several international partners have expressed interest in co-operating with SHB to promote the operation of the consumer finance company.

SHB Finance will initially provide consumer credit services to individual customers that have annual income from VND150 million to VND200 million, later easing the market share to other individual customers with lower income.

Once SHB Finance is established, SHB will also transfer all its lists of individual borrowers with annual income of less than VND200 million to SHB Finance.

The share swap plan was passed by SHB and VVF shareholders at their annual general shareholders’ meeting last year.

Last week, the State Bank of Viet Nam officially approved the merger plan of the two bodies. — VNS