The Joint Stock Commercial Bank for Foreign Trade of Việt Nam (Vietcombank) plans to add 10 per cent to its tier-1 capital in 2018 through issuing shares for foreign investors.— Photo cafef.vn

HÀ NỘI — The Joint Stock Commercial Bank for Foreign Trade of Việt Nam (Vietcombank) plans to add 10 per cent to its tier-1 capital in 2018 through issuing shares for foreign investors.

According to the bank’s chairman Nghiêm Xuân Thành, the capital raise proposal was approved by the State Bank of Việt Nam and the Government in December 2017. The action aims to secure its capital adequacy ratio of nine per cent in accordance with Basel II standards. 

The number of to-be-issued shares would not exceed 10 per cent of the bank’s total number of shares, which is now nearly 3.6 billion.

Vietcombank will issue additional shares to a maximum of 10 foreign investors, chairman Thành said at the bank’s annual general shareholder meeting on Friday.

The lowest price level of the to-be-offered shares would be evaluated by an underwriting company and be the average price of the last 10 trading sessions prior to the issuance date, he said.

Such calculation would make sure bank’s shareholders, including the Government, secure their benefits and rights at the bank, Thành said.

Vietcombank general director Phạm Quang Dũng said the Japanese bank Mizuho, one of the largest shareholders at Vietcombank, would purchase more shares to assure its ownership in the bank at 15 per cent.

Some foreign investors had expressed interests in buying Vietcombank shares, Dũng said, adding that some of them had offered to purchase all of the bank’s additional shares.

If Vietcombank failed to raise its tier-1 capital to comply with the Basel II standards, the bank would have to issue VNĐ5.8 trillion (US$257.8 million) worth of corporate bonds to increase its tier-2 capital.

Vietcombank had issued VNĐ11.8 trillion worth of corporate bonds, including VNĐ2 trillion for individual investors, thus leaving a large room for the bank to increase its tier-2 capital – which makes up its required reserves.

FPT chairman becomes Vietcombank board member

Trương Gia Bình, chairman of the technology-communications giant FPT Corporation, has become the newest management board member at Vietcombank.

Bình was voted by 91.73 per cent of the total voting shares, equal to three billion shares at the meeting, becoming one of the board members along with seven other people.

The total number of board members at Vietcombank was approved by shareholders to up to 11, meaning there are still three seats left empty at the bank.

In 2018, Vietcombank targets a yearly increase of 14 per cent in total asset, 15 per cent in both mobilised capital and credit. It also plans to cut non-performing loan ratio (NPL) to below 1.5 per cent.

The bank also projects its pre-tax profit will rise 14.6 per cent year on year to VNĐ13 trillion from its record-high VNĐ11.3 trillion made in 2017.

The bank plans to spend 8 per cent of its charter capital, equal to VNĐ2.88 trillion, on dividend payout for its performance in 2017. — VNS