The Governor of the State Bank of Vietnam (SBV) issued a decision to amend charter capital of Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) in the establishment and operation license to over 37,000 billion dong.
On February 21, 2019, SBV issued Decision No. 300/ QD-NHNN on amending the charter capital at the Establishment and Operation License of Vietcombank.
Accordingly, the Governor decided to amend the charter capital in Article 2 on License of establishment and operation No. 138/ GP-NHNN dated 23/5/2008 by the Governor of SBV for Vietcombank as follows: “The charter capital of Vietcombank is 37,088,774,480,000 dong (Thirty-seven trillion, eighty eight billion, seven hundred and seventy four million, four hundred and eighty thousand dongs)”.
SBV requires that Vietcombank must be responsible for implementing the procedures stipulated in Clause 4, Article 29 of the Law on Credit Institutions for the above-mentioned revised contents.
This decision takes effect from the date of signing and is an integral part of the Establishment and Operation License No. 138/ GP-NHNN dated May 23, 2008 issued by the SBV Governor for Vietcombank and replaced the Decision No. 95/ QD-NHNN dated 18/Jan/2017 on the amendment of the content at the License of establishment and operation of Vietcombank.
Earlier in January, SBV Governor approved Mizuho investor to buy shares of Vietcombank to ensure maintaining the ownership rate of 15 percent of the charter capital. In addition, the investor GIC from Singapore bought 2.55 percent of this bank’s share, thereby helping Vietcombank increase its capital to over 37,000 billion dong. The deal was completed from the end of December 2018 and the investors also transferred the money to Vietcombank before January 4.
On April 26, Vietcombank will hold the annual shareholders’ meeting 2019. One of the remarkable contents is that the bank will continue to raise capital because the plan of issuing capital for foreign partners is only one third of the total number of shares expected being offered.
The capital increase this year may be done by continuing to issue individual shares or submitting to shareholders a plan to raise capital from owners’ equity (bonus share distribution) and stock dividend payment. Vietcombank’s undistributed after-tax profit as of the end of 2018 reached 20,029 billion dong.
Vietcombank is currently ranked 2nd after Vietnam Joint Stock Commercial Bank of Industry and Trade (VietinBank) on charter capital, but the gap is pretty minor. With this bank’s plan to increase capital this year, while VietinBank is still stuck in raising capital, Vietcombank will soon become the bank with the largest charter capital in Vietnam.
