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|IFC offers $57-million convertible loan to VPBank|
|Analysis: Basel II bank performances|
|FE Credit raises $100 million in financing arranged by Credit Suisse|
|VPB stocks were listed on HoSE on August 8, but will be officially available for trading from August 17|
In particular, HoSE published Notice No.856/TB-SGDHCM on the receipt of the first listing registration of VPBank. Accordingly, more than 1.3 million VPB stocks will be listed at the price of VND39,000 ($1.7) per share. In total, VPBank is valued at nearly VND52 trillion ($2.3 billion), overtaking Millitary Bank (MB) as the private commercial bank with the highest capitalisation value on the stock exchange.
VPB stocks were listed on HoSE on August 8, but they will be officially traded from August 17. The consultation unit for VPBank’s listing plan is Viet Capital Securities (VCSC), one of the fastest growing securities companies in Vietnam.
As of June 30, 2017, VPBank’s total assets were VND249 trillion ($11 billion), a growth of 9 per cent compared to the end of 2016. Its deposit sharply increased form VND172 trillion ($7.6 billion) at the end of 2016 to VND195 trillion ($8.6 billion) as of June 30, 2017, an equivalent to a 13 per cent growth.
In 2017, VPBank targets to take in more than VND217.7 trillion ($9.6 billion) in deposits and to hold nearly VND200.6 trillion ($8.8 billion) in outstanding loans and bonds.
Also in July, nearly at the same time with the HoSE notice of VPBank’s listing, the International Financial Corporation, a member of the World Bank Group, has recently approved a convertible loan of $57 million to VPBank.
The two-year loan term, which can be extended for an additional two years, will help VPBank to expand its lending scope to small- and medium-sized enterprises (SMEs), a strategic and focal segment of VPBank. According to the agreement, IFC has the right to convert the principal balance to VPBank’s common shares during the loan term. At present, VPBank is completing legal procedures for this convertible loan.
As the financial institution of the World Bank Group focused exclusively on supporting the private sector with medium or long-term loans and advisory services, including risk management, IFC contributes significantly to the development of the Vietnamese banking sector.
Before the day of listing, a number of VPBank stock transfers took place. In particular, on July 7, the State Security Commission of Vietnam received three notifications of transactions from three individuals related to vice chairman Lo Bang Giang.
Nguyen Thu Thuy, Giang’s wife, registered to have the right to own more than 46 million VBBank shares, an equivalent of 3.49 per cent of its chartered capital. This is an internal deal.
Similarly, Lo Hai Yen Ngoc, Giang’s sister, registered to own more than 44 million shares, an equivalent of 3.3 per cent of VPBank’s chartered capital.
At the same time, Ly Thi Thu Ha, Giang’s mother, registered to own more than 21 million shares, an equivalent of more than 1.59 per cent of VPBank’s chartered capital.
In total, Giang and his relatives now hold an 8.5 per cent stake in VPBank, wielding significant influence on VPBank’s decisions in the future.