VPBank completes sale of 15% stake to SMBC

Mr. Ngo Chi Dung, Chairman of the Board of Directors of VPBank . Photo: VPB

Thus, the handshake between VPBank and SMBC - one of the largest foreign share sales deals in the banking and finance sector in 2023 - has been officially completed.

Speaking at the ceremony, Mr. Ngo Chi Dung - Chairman of the Board of Directors of VPBank said: “Since March 2023, VPBank has signed an agreement to issue 15% of shares to SMBC Bank - a member of SMBC Group. But the story of the relationship between VPBank and SMBC Bank began more than 2 years ago, after VPBank transferred 49% of shares from FE Credit to SMFG Consumer Finance Company under SMBC Group. At that time, both sides agreed that the relationship could become even more connected and closer.”

Representatives of the two banks exchanged documents certifying the completion of the private share issuance deal. Photo: VPB

VPBank reached an agreement to issue a private placement to its strategic partner SMBC at the end of March. Accordingly, the bank offered more than 1.19 billion shares to SMBC - a bank under the financial group Sumitomo Mitsui Financial Group, Inc. (SMFG), Japan. The total value of the issuance reached more than 35.9 trillion VND (equivalent to nearly 1.5 billion USD). All shares issued privately to the strategic partner will be restricted from transfer within the next 5 years.

SMBC has already deposited 10% of the offering value right before the bank's Annual General Meeting of Shareholders held in April 2023. About 90% of the remaining value of the transaction will be recorded in the bank's equity immediately after the transaction is completed.

The offering agreement to SMBC is part of VPBank's capital increase plan from 2022 to strengthen long-term financial capacity.

VPBank's total equity will be raised from VND103.5 trillion to approximately VND140 trillion. The bank's capital adequacy ratio (CAR), as calculated by international credit rating agency Moody's, will increase to nearly 19%.

Source: https://laodong.vn/kinh-doanh/vpbank-hoan-tat-thuong-vu-ban-15-co-phan-cho-smbc-1256969.ldo