Illustrative photo (Photo: VP Bank courtesy)
 
Hanoi (VNA) - VPBank has successfully increased its charter capital to around 14 trillion VND (around 616.7 million USD).

The capital hike was implemented through the dividend payout in shares and share bonus.

After the rise, the governor of the State Bank of Vietnam issued Decision 1426/QD-NHNN on July 7, revising VPBank’s business licence with a change to its charter capital from 10.77 trillion VND to 14 trillion VND.

VPBank will make another charter capital hike this year, of roughly 2 trillion VND to raise its capital to 16 trillion VND through a 15 percent private placement to local and international investors. The share price will be determined by mutual consent through negotiations between the bank and its investors, but it will be higher than the book value.

The bank said it is raising more capital to meet its operational demand, and to comply with the safety ratio regulated by the central bank.

This year, VPBank has been the second bank in the country to finalise a capital hike plan, after OCB.

On June 20, OCB completed its charter capital hike procedures and raised its capital from 4 trillion VND to 5 trillion VND through dividend payout in shares and private placement.-VNA