VPBank has received a 10 per cent deposit from SMBC

May 19, 2023 | 15:59

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At an investor-update meeting on May 18, Luu Thi Thao, deputy general director of VPBank, revealed that the bank has received a 10 per cent deposit from Japanese partner SMBC, as part of the $1.5 billion private placement agreement signed between the two banks.

VPBank has received a 10 per cent deposit from SMBC

The process is expected to take approximately 2–3 months, with the completion of procedures and receipt of the remaining 90 per cent of the funds estimated by the end of July or early August.

“The bank is currently taking necessary steps to finalise the transaction, including obtaining approvals from relevant authorities and conducting a private offering to increase its charter capital in accordance with legal regulations,” Thao said.

VPBank held a signing ceremony for a private placement agreement last March, allocating 15 per cent of its charter capital to SMBC, one of the top financial institutions in Japan, in a $1.5 billion deal.

“Having a significant capital buffer allows the bank to realise its ambitions for both VPBank and the comprehensive ecosystem,” Thao noted.

The involvement of SMBC positions VPBank as the second-largest bank in terms of equity in Vietnam, following Vietcombank. This significant increase in equity enables VPBank to have the financial strength to meet the needs of customers across all strategic segments.

VPBank announces SMBC as foreign strategic investor

VPBank announced today that it has entered into an agreement with Japan’s Sumitomo Mitsui Banking Corporation (SMBC), a subsidiary of Sumitomo Mitsui Financial Group, Inc. (SMFG), to issue a 15 per cent equity stake through a private placement, officially welcoming SMBC as a foreign strategic investor of the bank.

VPBank provides effective support for FIEs

In a fresh move, the innovative Hanoi-based commercial lender VPBank has reiterated its focus on promoting the foreign direct investment (FDI) landscape in Vietnam through a cooperative deal with its strategic partner, Sumitomo Mitsui Banking Corporation (SMBC), to develop and supply an inclusive suite of solutions to support foreign-invested enterprises (FIEs) landing ventures in Vietnam.

By Trung Duong

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