Banks to boost capital sales to foreign countries in 2024

Lien Viet Post Joint Stock Commercial Bank (LPBank – HoSE: LPB) is implementing steps in its plan to issue 300 million private shares to foreign investors, increasing maximum ownership to 15.5% from 5%.

Accordingly, the specific offering time will be decided by the bank's Board of Directors after approval by competent State agencies. Shares offered to foreign investors will be subject to a 3-year transfer restriction for strategic investors and a 1-year transfer restriction for professional securities investors.

In addition, Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank – HoSE: HDB) also plans to reserve 10% foreign room for capital increase issuance.

At a meeting with investors last February, Mr. Hoang Thanh Tung, Director of HDBank's Investor Relations Department, shared that the bank had made necessary preparations for strategic partners, reserving about 10% of foreign room for capital increase issuance.

Accordingly, the plan to sell capital to strategic investors can be implemented when market conditions are favorable and the bank finds suitable partners. Mr. Tung also said that during the past time, HDBank has received attention from a number of foreign partners from Korea, Europe and the US.

Selecting investors to issue capital increase and attract strategic shareholders is always in the bank's orientation to improve financial capacity to meet growth needs, while ensuring capital safety and liquidity indicators.

In July 2023, the Board of Directors of Southeast Asia Commercial Joint Stock Bank (SeABank - HoSE: SSB) also approved a plan to issue a maximum of 94.6 million additional shares, equivalent to 4.6366% of outstanding shares, to offer to a professional securities investor, expected to be Norfund (The Norwegian Investment Fund for developing countries).

SeABank offers a price not lower than the book value in the audited separate financial report for 2022 of VND 12,861/share. The expected highest offering price is VND 37,032/share. The specific offering price is decided by the Board of Directors depending on the negotiation and agreement process with investors. The shares offered separately are restricted from transfer for at least 1 year from the date of completion of the offering.

However, in November, the bank decided to stop implementing the private offering plan according to Resolution No. 271 dated May 8, 2023 and Resolution No. 422 dated July 3, 2023 of the Board of Directors. The reason given was based on the actual situation.

At the end of March 2023, Vietnam Prosperity Joint Stock Commercial Bank (VPBank – HoSE: VPB) also signed an agreement to privately issue 15% of its charter capital to SMBC Bank of Japan (part of SMFG financial group). After the above agreement, SMBC Group officially became a strategic investor of VPBank.

This has become the largest stock issuance deal for strategic shareholders in the history of Vietnam's banking industry with a total value of up to 1.5 billion USD.

In addition, according to the plan, Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank - HoSE: VCB) will also carry out private issuance to foreign investors in the period of 2023 - 2024.

Previously, in 2019, the bank had planned to privately offer 6.5% of its shares to foreign partners but it has not been completed yet. Of which, the bank plans to privately offer 307.6 million shares to partner Mizuho Bank (46.1 million shares) and other investors (261.4 million shares) .

Source: https://www.nguoiduatin.vn/ngan-hang-day-manh-ban-von-cho-nuoc-ngoai-trong-nam-2024-a652608.html