ABBank plans to raise its charter capital to nearly VNĐ27 trillion (US$1.03 billion), strengthening its financial foundation and supporting business expansion. — Photo courtesy of the bank

HCM CITY — An Bình Commercial Joint Stock Bank has approved a plan to raise charter capital to nearly VNĐ27 trillion (US$1.03 billion).

After completing the first phase of its 15 per cent stock dividend payout on July 10, which raised its charter capital to VNĐ16.1 trillion ($615.1 million), the lender sought shareholders’ approval to adjust the capital increase plan previously approved at its 2026 annual general meeting.

Shareholders approved raising the rights offer ratio for existing shareholders from 20 per cent to 50 per cent.

They also approved a bonus share issuance of 12 per cent.

Together, the two are expected to add nearly VNĐ10 trillion to the bank’s capital.

The bank said the plan represents a strategic move to strengthen its financial capacity, expand its business scale, and enhance long-term shareholder value.

It will also provide a stronger foundation for its preparations to list on the Ho Chi Minh Stock Exchange.

The larger capital base is expected to strengthen ABBank’s financial position, help it meet capital adequacy requirements and create greater room for lending to key economic sectors in line with its business strategy and the Government’s development priorities, it added.

The move also represents proactive preparations by ABBank as the stock market is set to enter the process of being upgraded as an emerging market by FTSE Russell in September.

As the capital market increasingly integrates internationally, strengthening its financial foundation and maintaining operational efficiency will enable ABBank to respond more proactively to growing market requirements.

These efforts could also enhance the attractiveness of ABB shares to investors, bringing it closer to its goal of becoming eligible for inclusion in FTSE index funds, it said. — VNS