Banks raise foreign ownership ratio to improve financial strength hinh anh 1The Vietnam Securities Depository adjusts the foreign ownership ratio of MB shares from 22.9908 percent to 23.0224 percent on November 9 (Photo:

Hanoi (VNS/VNA) - Vietnamese banks have been increasing their foreign ownership ratios to attract investment and improve financial strength.

According to Military Bank (MB), the Vietnam Securities Depository (VSD) had adjusted the foreign ownership ratio of MB shares from 22.9908 percent to 23.0224 percent on November 9, reported.

The move was made after MB issued nearly 362 million shares to pay dividends in 2019 to increase its charter capital to nearly 27.98 trillion VND (1.2 billion USD).

Among its foreign shareholders, Dragon Capital funds Norges Bank and Amersham Industries Ltd are now the largest with ownership rates of 1.68 percent and 1.44 percent, respectively, as of June 25.

In addition, MB also plans to divide 25.6 million treasury shares with its existing shareholders from Q4 2020 to the end of Q1 2021.

Earlier, the board of directors of Techcombank approved to raise the bank’s foreign ownership limit from 22.4951 percent to 22.5076 percent of its charter capital.

Lienvietpostbank has also increased the ownership ratio of foreign investors from 5.5 percent to nearly 10 percent.

Meanwhile, VietCapitalBank will consult the bank’s general meeting of shareholders to authorise the board of directors to decide a new foreign ownership ratio.

Nam A Bank said it planned to sell shares to foreign investors from now to the end of this year to increase charter capital to nearly 7 trillion VND through the issue of 57 million shares to pay dividends at a rate of 12.4878 percent and a private placement of 143 million shares. The bank said it was in the process of negotiating with foreign investors.

In mid-2020, the market also recorded the sale of 15 percent shares of OCB Bank to Japanese’s Aozora Bank, raising the Vietnamese bank’s charter capital from 7.89 trillion VND to 8.76 trillion VND.

Vietnam’s finance and banking is still attracting foreign investors, but experts said the low ownership ratio of 30 percent capped for foreign investors was a barrier./.