VinaCapital invests 11 million USD in OCB
The Vietnam Opportunity Fund (VOF), managed by VinaCapital Group, invested 11 million USD in the Orient Commercial Bank (OCB), owning nearly 5 percent stake in the bank.
OCB currently ranks 17 out of 34 commercial banks in Vietnam in terms of total assets (Photo: ocb.com.vn)Hanoi (VNA) - The Vietnam Opportunity Fund (VOF), managed by VinaCapital Group, invested 11 million USD in the Orient Commercial Bank (OCB), owning nearly 5 percent stake in the bank.
This investment is expected to help OCB diversify its services to targeted customer segments, including affluent individual clients and small- and medium-sized enterprises.
Andy Ho, chief investment officer of VincaCapital and managing director of the Vietnam Opportunity Fund, told enternews.vn that this investment was a rare opportunity to own a meaningful stake in a bank that had high lending and earnings growth.
However, the details of the purchase price or the number of shares VOF has acquired from the deal have not been disclosed.
In August, VOF had also invested in Tasco Joint Stock Company and FPT Digital Retail Joint Stock Company, with 11 million USD being poured into each company.
Established in 1996, OCB currently ranks 17 out of 34 commercial banks in Vietnam in terms of total assets. The bank has a compound annual growth rate (CAGR) of 23 percent, and expects earnings growth of approximately 100 percent and 30 percent in 2017 and 2018, respectively.
The bank expects to list on the HCM Stock Exchange (HOSE) before the end of 2019. Late in June, OCB received approval from the central bank to increase its registered capital from 4 trillion VND (176 million USD) to nearly 4.2 trillion VND via issuance of bonus shares.
VOF is an investment fund company founded by VinaCapital in 2003 with initial capital of 10 million USD. Now, this number has increased to more than 20 million USD. VOF’s profitability in the years from 2010 until now reached 42 percent, contrary to the market loss of 18 percent.
This year, VOF implemented 25 private equity (PE) transactions, with a total investment of 476.3 million USD.
Since the beginning of the year, VinaCapital has divested capital in a number of real estate companies, in order to restructure investment categories to suit the new situation.-VNA
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