VietinBank to issue 1 billion shares, raising charter capital to $2bln

Xuan Thinh Monday | 11/16/2020 17:10

Vietnam Joint Stock Commercial Bank for Industry and Trade, known as VietinBank, is seeking shareholders’ approval to increase charter capital from issuing a billion shares as stock dividend, according to lender’s statement.

The lender plans to use after-tax profit in 2017, 2018 and 2019 to conduct the share issuance to pay dividends to existing shareholders.

Under the dividend plan, shareholders having 100 shares will receive 28 new shares. After the issuance, VietinBank's charter capital will increase to VND48,000 billion ($2 billion) from VND37,234 billion ($1.6 billion).

The additional charter capital will be used for infrastructure development, service development, credit expansion, and network operations.

For 2020, VietinBank targets 1- 3 percent growth in total assets and credit growth of 4-8.5 percent, while bad debt ratio remains below 2 percent.

Regarding the shareholder structure, the State Bank of Vietnam is the largest shareholder holding with 64.46 percent stake. Among the amount, Chairman of VietinBank's Board of Directors Le Duc Tho, represents 40 percent of the State's capital, two members of the Board of Directors, Tran Minh Binh and Tran Van Tan, both represent 30% of the State's capital.

The major foreign investor in VietinBank is MUFG Bank with a 19.73 percent ownership rate.

Recently, VietinBank said it had bought back all bad debts from VAMC before maturity. Accordingly, all 5-year special bonds used to pay VND13,427 billion of bad debt to VAMC were settled by VietinBank more than 3 years before maturity.

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