The Bank for Investment and Development of Vietnam (BIDV), the country’s second largest bank by charter capital and third largest by total assets, is said to be in negotiating with eight foreign investors, for overseas strategic partnership, reported the local newswire VnExpress.
As approved by the shareholders last year, the bank will issue additional shares to the foreign investors, but the total foreign ownership shall not exceed 30 per cent of its capital.
BIDV, earlier in February, revealed that it will offload 25 per cent stake to the chosen foreign partners – with 15 per cent given to a strategic partner, probably a bank, and 10 per cent to a nonnative financial company.
The bank has a registered capital of VND28.122 trillion ($1.3 million) and total asset (by the end of 2014) of VND650.36 trillion ($30.25 billion). It was equitised four years ago and began listing shares on the local stock exchange from January, 2014.
The Vietnamese central bank, representing the state holding, owns 95.76 per cent in BIDV.
According to latest data published by the lender, its profit before tax in the first quarter of this year reached VND1.84 trillion ($85.6 million), up 2 per cent year-on-year. The non-performing loan ratio is kept under three per cent.
Its stock price closed Tuesday’s trading session at VND19,000, retaining a three-month high plateau.
Other major commercial banks in Vietnam have also offloaded stakes to foreign financial institutions in the recent past. For example, Vietinbank‘s state ownership is down to 64.5 per cent with Bank of Tokyo-Mitsubishi UFJ as a strategic partner holding 19.73 per cent stake. Similarly in Vietcombank, the holdings of the SBV and its prudent shareholder, Mizuho Bank Ltd, are 68.2 per cent and 13.3 per cent, respectively.