The State Bank of Vietnam (SBV) has issued official document approving Orient Commercial Joint Stock Bank (OCB) to increase charter capital from 7.898 trillion dong to 8.767 trillion dong through a private placement for foreign investors.
OCB is responsible for raising capital as prescribed by law. Within maximum 10 working days from the date of completion of the stock issuance in accordance with regulations, OCB shall carry out procedures for amending and supplementing the Operation license as prescribed in Clause 4, Article 11, Circular 50/2018/TT-NHNN dated December 31st 2019 on documents, orders and procedures for approving a number of changes of commercial banks and foreign bank branches.
Previously, according to information of OCB from the beginning of the year, the bank carried out a private placement of 118 million shares as approved by the shareholders meeting on April 27th 2019, in which an investor Aozora Bank registered to buy 86.9 million shares. If the sale of shares is successful, the ownership of Aozora in OCB will be 11 percent of charter capital.
Meanwhile, Nikkei Asian mentioned that Aozora Bank from Japan expects to buy 15 percent of OCB’s stake before April this year, marking its first overseas agreement since change in brand in 2001. The deal is expected to reach about 15 billion Japanese yen, equivalent to 139 million US dollars.
Aozora is one of the banks that are shifting their focus to Southeast Asia in search of growth amid a shrinking Japanese population and low interest rates.
Aozora has plans to assist OCB in managing risks and compliance system based on international standards. They will work together on digital banking and investment banking, as well as provide support to Japanese companies seeking to expand in Vietnam.
