Central bank approves ACB"s plan to raise charter capital

August 06, 2020 | 09:34

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The State Bank of Vietnam has approved the Asia Commercial Bank (ACB)’s plan to raise its charter capital from 16.6 trillion VND (721 million USD) to 21.6 trillion VND (938.3 million USD).

central bank approves acbs plan to raise charter capital

A securities guard checks the body temperature of people entering Asia Commercial Bank through the border gate (Photo courtesy of the bank)

Hanoi - The State Bank of Vietnam has approved the Asia Commercial Bank (ACB)’s plan to raise its charter capital from 16.6 trillion VND (721 million USD) to 21.6 trillion VND (938.3 million USD).

The plan will be implemented via pidend payment in shares to shareholders.

ACB plans to issue 498.8 million shares to pay the pidend, equivalent to a total value of 4.98 trillion VND.

The payment ratio is 30 percent, meaning every shareholder will receive three new shares for every 10 they hold.

The expected issuance time is the fourth quarter of this year.

Previously, ACB planned to pay a 2019 pidend in shares and cash. However, due to the COVID-19 pandemic, the State Bank of Vietnam required banks to use resources to reduce interest rates, support businesses and not pay pidends in cash.

ACB also plans to pay the 2020 pidend at a rate of not less than 20 percent.

In the first six months of this year, ACB recorded a consolidated pre-tax profit of 3.8 trillion VND (165 million USD), up 5.4 percent over the same period last year.

The bank plans to earn a pre-tax profit of 7.6 trillion VND this year.