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Vietcombank wants to increase its charter capital to more than 50,000 billion dong


Vietcombank plans to submit to shareholders a plan to increase its charter capital with a total increase of more than 13,300 billion dong.
On the morning of April 23, Vietnam Joint Stock Commercial Bank for Foreign Trade (Vietcombank, code: VCB) held the annual general meeting of shareholders in 2021.

Speaking at the meeting, Mr. Nghiem Xuan Thanh – Chairman of Vietcombank – said that the bank’s management board will submit to shareholders a specific business plan for 2021 along with the plan to increase charter capital to over VND 50,000 billion. is expected to increase through 2 times with a total increase of more than 13,300 billion. Specifically, in phase 1, Vietcombank will increase its charter capital from VND 37,088 billion to VND 47,325 billion by issuing more than 1 billion shares from the remaining undistributed after-tax profit after dividends in 2019 (billion 8% in cash). Implementation period in 2021. Vietcombank plans to increase its capital through 2 shares issuance Phase 2, Vietcombank will issue private shares with a scale equivalent to 6.5% of charter capital at the time of offering. Expected additional capital increase phase 2 is more than 3,076 billion. After the issuance, the bank’s chartered capital will increase to VND 50,401 billion. Offering subjects are institutional investors with financial potential, which may include one or several existing shareholders. During the private offering, Vietcombank plans to issue at least 46 million shares to strategic partner Mizuho Japan to keep its ownership rate at least 15% and issue more to other investors. Shares will be issued to a maximum of 99 investors. The issue price is not lower than the valuation of the valuation organization and arithmetic average of the closing price of 10 trading sessions on HoSE, immediately preceding the date the investor announced the purchase. The execution period will be in 2021 and will continue in the following year if not completed. Vietcombank’s new capital raising plan is 9% higher than its 2020 plan and 36% higher than its current charter capital. In addition, at this morning’s shareholders meeting, Vietcombank also plans to use all remaining profits after tax, deducting funds for 2020 to pay dividends. However, the specific plan needs to wait for the State Bank’s official opinion. In 2021, Vietcombank sets a target of 5% increase in total assets, 10.5% increase in credit balance and 7% increase in mobilization. According to the plan, the target consolidated profit before tax of Viecombank will increase 11% to VND 25,600 billion. NPL ratio less than 1%. HA Mr. Pham Quang Dung: Twice appointed General Director of Vietcombank