Vietinbank would sell a 10-percent stake to the International Finance Corporation (IFC) in October for 190 million USD, Vietinbank chairman Pham Huy Hung said last week.
The price was set by the Government, the Ministry of Finance and the State Bank of Vietnam .
When the deal is finalised, Vietinbank will be the first partly-equitised State-owned bank to have obtained a foreign strategic investor within 20 months of its initial public offering (IPO).
Vietcombank was the first State-owned bank to go public in December 2007, but it has been struggling since to land a foreign strategic investor.
IFC, a financial arm of the World Bank, also agreed to lend 120 million USD to Vietinbank over 10 years at six-month LIBOR (London Interbank Offered Rate) plus a fixed margin of 1.5 percent.
Vietinbank also expects to sell another 10-20 percent to Canada 's Nova Scotia Bank which will meet with Government representatives next month with the aim to finalise the Vietinbank deal in December.
Vietinbank is also planning to issue 392 million additional shares next month, of which 315.1 million will be offered to existing shareholders and the remaining 76.9 million issued to them as a dividend. The deadline for shareholders to register for participation is September 8.
Shares of Vietinbank (coded CTG on the HCM City Stock Exchange) closed up 3.3 percent on August 30 to 22,200 VND per share.
In the first six months of the year, the Hanoi-based bank reported earnings of 5.3 trillion VND (273 million USD), of which revenues from business activities accounted for 659 billion VND, forex services 24.16 billion VND (1.23 million USD), and other sources of revenue 168.7 billion VND (8.65 million USD).
After deducting 813 billion VND (41.69 million USD) risk provision, the bank posted a net profit in the first half of 1.6 trillion VND (83 million USD).
Vietinbank expects to increase its charter capital to 23 trillion VND (1.18 billion USD) by the end of the year, and the figure is slated to reach 35 trillion VND (1.8 billion USD) next year./.
The price was set by the Government, the Ministry of Finance and the State Bank of Vietnam .
When the deal is finalised, Vietinbank will be the first partly-equitised State-owned bank to have obtained a foreign strategic investor within 20 months of its initial public offering (IPO).
Vietcombank was the first State-owned bank to go public in December 2007, but it has been struggling since to land a foreign strategic investor.
IFC, a financial arm of the World Bank, also agreed to lend 120 million USD to Vietinbank over 10 years at six-month LIBOR (London Interbank Offered Rate) plus a fixed margin of 1.5 percent.
Vietinbank also expects to sell another 10-20 percent to Canada 's Nova Scotia Bank which will meet with Government representatives next month with the aim to finalise the Vietinbank deal in December.
Vietinbank is also planning to issue 392 million additional shares next month, of which 315.1 million will be offered to existing shareholders and the remaining 76.9 million issued to them as a dividend. The deadline for shareholders to register for participation is September 8.
Shares of Vietinbank (coded CTG on the HCM City Stock Exchange) closed up 3.3 percent on August 30 to 22,200 VND per share.
In the first six months of the year, the Hanoi-based bank reported earnings of 5.3 trillion VND (273 million USD), of which revenues from business activities accounted for 659 billion VND, forex services 24.16 billion VND (1.23 million USD), and other sources of revenue 168.7 billion VND (8.65 million USD).
After deducting 813 billion VND (41.69 million USD) risk provision, the bank posted a net profit in the first half of 1.6 trillion VND (83 million USD).
Vietinbank expects to increase its charter capital to 23 trillion VND (1.18 billion USD) by the end of the year, and the figure is slated to reach 35 trillion VND (1.8 billion USD) next year./.
