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Banking & Finance

Vietcombank to raise charter capital

Released at: 17:07, 19/04/2016

Vietcombank to raise charter capital

Increase to come from bonus share issue and private offering to foreign investors.

by Hung Nguyen

Targets set by Vietcombank for this year include total assets reaching VND765.43 trillion ($34.33 billion), an increase of 13.5 per cent against 2015, outstanding credit of VND452.96 trillion (20.31 billion), an increase of 17 per cent, and pre-tax profit of VND7.5 trillion ($336.45 million), an increase of 10 per cent.

It will issue bonus shares to existing shareholders to increase its charter capital together with private offerings to foreign investors. The bank will have 35 per cent of its charter capital represented by the bonus issue and 10 per cent by the private offering to foreign investors.

The bank therefore expects to gain about VND9.32 trillion ($418.09 million) from the bonus issue and VND3.59 trillion ($161.04 million) from the private offering.

Charter capital will then stand at VND39.57 trillion ($1.77 billion), from VND26.65 trillion ($1.19 billion) currently.

According to Mr. Nguyen Xuan Thanh, Chairman of Vietcombank, the increase in charter capital comes at a suitable time. It can use its retained earnings to buy the shares and therefore increase its charter capital and the State can also sell shares and increase the bank's charter capital.

The dividend payout for 2015 will be a minimum of 10 per cent, in cash.


 

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