Vietcombank to lift chartered capital

November 28, 2010 | 10:39

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Vietcombank has got the thumbs up to muscle-up its chartered capital.

It will increase its chartered capital by VND4.3 trillion ($215 million) to VND17.5 trillion ($875 million) to raise its capital adequacy ratio (CAR) to 9.5 per cent by the end of this year from 8.17 per cent as of September 30.

The bank will execute its proposal, passed by its shareholders at the extraordinary general shareholder meeting on November 9, by issuing shares for its current shareholder with distribution rate of 33 shares per each 100 shares by the first quarter of next year. After raising chartered capital, state stake keeps unchanged with 90.7 per cent of the total stake.

Among the total of additional capital, around VND900 billion ($45 million) is scheduled to contribute to its affiliate and acquisition stake of other firms, VND700 billion ($35 million) for infrastructure improvement and the remaining capital will be added to working capital.

It is Vietcombank’s second chartered capital increase this year. The first was completed in September through issuing shares for its current shareholders to increase by VND1.1 trillion ($55.5 million). The capital is mostly to enforce the bank’s mid and long-term credit, investing in infrastructure, technology and human resources as well as to contributing capital into its joint venture affiliates.

By Van Anh

vir.com.vn

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