BIDV raises $875 million from selling 15% stake to KEB Hana Bank

South Korea’s KEB Hana Bank has officially become the first foreign strategic shareholder of Commercial Bank for Investment and Development of Vietnam (BIDV) with a 15% stake. This the first major acquisition by a foreign financial institution of a Vietnamese bank in several years.

After the share issuance, BIDV's charter capital increases from $1.48 billion to $1.75 billion, the highest in the Vietnamese banking system, according to statement on bank’s website.

KEB Hana Bank invests capital to own 15% stake in BIDV with the holding period of at least 5 years.

At the same time, BIDV receives a long-term technical assistance from Hana Financial Group and KEB Hana Bank, including but not limited to 6 areas: strategic corporate governance; technology and digital banking; retail banking development; diversified asset portfolios; risk management; human resources training and development.

KEB Hana Bank's large investment in Vietnam is a clear testament to the optimism and confidence in the stability and development potential of Vietnam's economy and the finance and banking industry in general and BIDV in particular, Hong added.

Established in 1957, BIDV is the largest lender in Vietnam by total assets, which hit $61 billion as of 30 September 2019.

KEB Hana Bank is a member of Hana Financial Group - one of the largest financial groups in Asia, providing comprehensive financial activities.

As of 30 June 2019, the bank’s total assets stood at $308.2 billion.