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Accordingly, the Board of Directors of VPBank would request approval from its shareholders to lower the foreign ownership limit (FOL) to 15 per cent from the current 23 per cent. The bank will also launch a treasury buyback for 5 per cent of the shares to realign the ownership structure.
|VPBank has declared reducing the FOL to 15 per cent|
The bank reported upbeat performance in 2019, with earnings reaching VND8.260 trillion ($359.13 million).
However, it would not issue any cash dividends and instead reinvest these profits into its operations to sustain growth. The Board of Directors also submitted a plan to issue 17 million shares (0.672 per cent of the total outstanding shares) for the Employee Stock Ownership Plan (ESOP) at VND10,000 (43.48 US cents) per share.
The bank plans to use the existing treasury shares and the lock up will allow recipients to sell 30 per cent of holdings after the first year, another 35 per cent after the second year, and another 35 per cent after the third.
Last year, the bank has issued $300 million of bonds with a three-year term under the Euro Medium Term Note (EMTN) programme, with a face value of $200,000 per bond and maturity date of July 17, 2022.
The bonds are issued under the book building method and based on the consultation and arrangement of Standard Chartered Bank, BNP Paribas, and J.P. Morgan. The bonds are issued on the international market, that is, investors outside of US territory in line with Regulation S of the US Securities Act of 1993 (amended) and listed at the Stock Exchange of Singapore.