BIDV talking to 8 foreign investors for strategic partnership

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.

Also read: BIDV to offload 25% stake to foreign investors

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.

Related stories:

Vietnam’s BIDV, Russia’s VTB sign MoU to boost their JV bank VRB

PGBank, Vietinbank to merge at 1:0.9 share swap ratio

Vietnam banking Dealbook: ACB, MHB, MBB, STB

Vietnam International Bank plans merger, puts listing plan on hold

Vietnam consolidates banks to form regional lenders

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.