On May 31st 2018, the State Bank of Vietnam (SBV) has issued Document 3994/NHNN-TTGSNH on increasing charter capital of the Military Commercial Joint Stock Bank (MB). Accordingly, SBV approved MB to increase charter capital from 18,155,053,630,000 VND to 21,604,513,810,000 VND according to the plan approved by MB’s Shareholders Committee in Resolution 05/NQ-MB-DHDCD on March 29th 2018 and by MB’s Board of directors in Resolution 10/NQ-MB-HDQT on April 19th 2018.
SBV requires MB to carry out the charter capital increase in accordance with the law. After completing capital raising procedures, MB is responsible for submitting the application for amendment of charter capital level in the license to SBV.
Under the charter capital raising plan approved by MB’s Shareholders Committee, MB will issue shares to pay dividends for the second phase in 2017 (at a ratio of 5 percent, equivalent to over 90.7 million shares) and increase charter capital from the sources of equity capital in line with regulations (14 percent, equivalent to over 254 million shares or bonus shares).
The source will be taken from MB’s after-tax profit in 2017 after the provisions of funds and other equity funds. The number of shares issued to existing shareholders are not restricted on transfer. The implementation is expected to be in the second and the third quarter of 2018.
Under the plan, 1.319 trillion dong of the additional 3.449 trillion dong charter capital will be used to invest in capacity, including building office building, branches; and invest in technology and other necessary equipment. The remaining 2.130 trillion dong will be used for the bank’s business activities.
