VietCapital Bank Submits To Issue 38m Shares

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Viet Capital Commercial Joint Stock Bank (Viet Capital Bank) (UPCoM: BVB) had just released the documents of the 2020 extraordinary general Meeting of Shareholders, scheduled to be held on August 26 in Ba Ria Vung Tau Province. The Bank submitted a plan to increase its charter capital by more than 906 billion dong in 2020 and Q1/2021, through two phases.

In the first phase, the Bank would issue more than 35.2 million shares to existing shareholders at the ratio of 9:1 with a maximum total value of 352.3 billion dong and 15 million ESOP shares. The charter capital was expected to increase from 3.171 trillion dong to 3.673 trillion dong. The Board of directors would decide the offering price of two times above, but not lower than 10,000 dong per share.

In the second phase, the Bank issued more than 40.4 million shares from equity to existing shareholders at the expected rate of 11%, raising its charter capital to over 4.077 trillion dong. The Board of directors decided the specific time of implementation.

VietCapital Bank planned to use 200 billion dong in the additional charter capital to invest in fixed assets to expand, develop operation network, modernise technology, 500 billion dong to supplement medium and long term capital for long-term loans. The rest would supplement working capital in banking operations.

Previously, at the annual meeting of 2020, the Bank approved the plan to issue more than 38 million shares to increase charter capital from equity at a rate of 12%. However, the Board of directors had not implemented the above capital increase plan and submitted another plan to the shareholders.

According to VietCapital Bank, dealing with the general economic situation and the volatile financial market due to the influence of Covid-19, the Bank had taken many measures under the direction of the government and the State Bank of Vietnam (SBV) to accompany and support clients to deal with epidemic impacts. This had a significant impact on the long-term development policy and strategy of the Bank in the near future, requiring many measures to consolidate financial capacity for stable development. Therefore, the need to increase charter capital at present was vital and urgent.

At the meeting, shareholders would also elect an independent member of the Board of directors and a full-time member of the Supervisory Board.


Category: Finance, Vietnam

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