Vietcombank permitted to raise capital to 2.3 billion USD

Transactions at Vietcombank. (Photo courtesy of the bank)

Hanoi (VNS/VNA) - The State Bank of Vietnam (SBV) just allowed the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) to raise its charter capital from 47 trillion VND (2 billion USD) to 55 trillion VND (2.3 billion USD) by issuing shares to pay dividends from the remaining profits of 2019 and 2020.

Previously, the bank’s 2022 Annual General Meeting of Shareholders approved the issuance of 856.5 million dividend stocks at a rate of 18.1%. 

Once the issuance is completed, its charter capital will increase by nearly 8.6 trillion VND to more than 55.89 trillion VND, thereby surpassing Vietinbank and BIDV to become the second largest bank, after VPBank. 

Vietcombank said that the mobilised capital will be spent on expanding the business scale to meet the economy’s requirements, and investing in improving management and operation plans. 

The bank also plans to issue a maximum of nearly 2.8 billion shares to pay dividends from the remaining profit of 2021 and the remaining profit accumulated until the end of 2018, which will boost its charter capital up to 27.6 trillion VND.

The proposal is accepted by the SBV and the Ministry of Finance, and is about to submit to the National Assembly’s approval, according to Pham Quang Dung, Chairman of the Board Director of Vietcombank./.

VNA