<article>Singapore sovereign wealth fund <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=gic">GIC</a> will be acquiring in a 7.73 per cent stake of <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=vietcombank">Vietcombank</a>, Vietnam’s biggest commercial lender, as per an agreement the two sides reached on Monday.</article>

Singapore sovereign wealth fund <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=gic">GIC</a> will be acquiring in a 7.73 per cent stake of <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=vietcombank">Vietcombank</a>, Vietnam’s biggest commercial lender, as per an agreement the two sides reached on Monday.
The GIC purchase, equivalent to over 305.8 million new shares in Vietcombank, is part of the lender’s private placement of almost 360 million shares.
<a style="color: #000080;" href="http://www.dealstreetasia.com/?s=credit+suisse">Credit Suisse</a> advised Vietcombank on the transaction, which is expected to be completed by the fourth quarter of 2016.
The equity investment by GIC will increase Vietcombank’s charter capital and help the bank prepare for the implementation of BASEL II, as well as maintain its leading position in the Vietnamese banking sector, the bank said in a statement.
In addition, the overseas fund with over $100 billion managing assets will provide Vietcombank with technical assistance and support.
“This investment reflects our confidence in Vietnam’s long-term growth potential. We believe with Vietcombank’s strong management team and market positioning, the bank will be able to capitalise on the strong growth trajectory of the Vietnam banking industry”, said Mr Amit Kunal, head of direct investments group for Southeast Asia, private equity and infrastructure at GIC.
It will also mark the first significant investment by the Singapore fund in a Vietnamese commercial bank, while GIC has, also within this year, strengthened the presence in <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=masan+group">Masan Group</a>, a top manufacturing and financial conglomerate in Vietnam, from 1.38 per cent to 5.08 per cent.
GIC is also holding equity interests in several other Vietnamese firms, including tech major <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=fpt">FPT Corporation</a> (3 per cent), taxi operator <a style="color: #000080;" href="http://www.vinasuntaxi.com/">Vinasun</a> (7.96 per cent) and diversified company <a style="color: #000080;" href="http://thepangroup.vn/">The Pan Group</a> (5 per cent).
Vietcombank was established in 1963 as a state-owned lender before being privatized in 2007. It has become the largest bank by market capitalization and the second largest company in Vietnam by the same criterion, after the Vietnam Dairy Products JSC, widely known as <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=vinamilk">Vinamilk</a>.
Its leading position in the banking sector, as long with the strong growth prospects, are expected to offer GIC potential upside in its investment, said Nghiem Xuan Thanh, Vietcombank chairman.
In turn, GIC’s tentative investment in the bank will help it garner an international exposure.
Also read:
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<a style="color: #ff0000;" href="http://www.dealstreetasia.com/stories/taxi-firm-vinasun-launches-taxi-app-to-challenge-global-players-in-vietnam-8074/">Vinasun launches taxi app to challenge global players in Vietnam</a>
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GIC to buy 7.7% in Vietcombank, marking first banking investment in Vietnam

GIC to buy 7.7% in Vietcombank, marking first banking investment in Vietnam

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GIC to buy 7.7% in Vietcombank, marking first banking investment in Vietnam

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