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Banking & Finance

BIDV seeking foreign partners

Released at: 17:40, 11/02/2015

BIDV seeking foreign partners

Bank adopts plans to sell 25% to foreign investors.

by Hung Nguyen

The Bank for Investment and Development of Vietnam (BIDV) plans to sell 25 per cent of its shares to foreign partners, of which 15 per cent will be earmarked for a strategic foreign partner and 10 per cent for an overseas financial investor.

The plan was approved at its annual general meeting held at the beginning of the year, according to Mr. Tran Phuong, Deputy Director of BIDV.

"Foreign investors will provide technical assistance, help to increase governance and risk management capacity, develop new products, and enhance BIDV's competitiveness," Mr. Phuong told Reuters. "The sale will also help to increase BIDV's financial capacity and provide the grounds for the long-term development of the bank."

The bank will issue additional shares to investors in order to keep the total foreign ownership at less than 30 per cent of charter capital.

BIDV's net profit-before-tax last year jumped 20 per cent against 2013, to VND6.1 trillion ($286 million), while its assets rose 18 per cent to VND655 trillion, it announced in a statement on its website last month.

The State Bank of Vietnam is the bank's largest shareholder, with 95.76 per cent.

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