Vietcombank to offer 10% stake to foreign investors, GIC among interested parties

Photo source: Internet Archive

Singaporean sovereign wealth fund GIC Private Limited is likely to become a significant shareholder in Vietcombank when the latter offloads a 10 per cent stake to foreign investors in the first half of this year after receiving government approval, the Nikkei Asian Review reported.

Vietcombank Chairman Nghiem Xuan Thanh said Japan’s Mizuho Bank, the bank’s largest foreign shareholder with a 15 per cent stake, is entitled to buy more shares to maintain its stakeholding at the bank.

Vietcombank is one the few banks with foreign ownership of 9.12 per cent stake while the ratio in state banks is capped at 30 per cent. With the aim of increasing capital through issuing shares, the bank earlier expected to complete the transfer of 7.7 per cent stake to GIC in 2016. The deal, however, failed due to disagreement on the share price.

Securities experts said that the lender’s asset quality has been properly maintained and its non-performing loans are the lowest in the industry, at 1.13 per cent as at end-2017.

Recently, Vietcombank earned VND334 billion ($14.6 million) by offloading 7.6 million shares of Vietnam Airlines (HVN). The bank currently holds more than 14.8 million shares of Vietnam Airlines, equivalent to 1.21 per cent of the carrier’s charter capital.

Not only Vietcombank, other lenders in the country are also seeking foreign partners. The Bank for Investment and Development of Vietnam (BIDV) earlier announced its plans to sell a 15 per cent stake to a strategic foreign partner and another 10 per cent to an overseas financial investor.

Meanwhile, Orient Commercial Bank (OCB) signed a comprehensive cooperation agreement in 2017 with South Korea’s Daegu Bank, preparing for further cooperation in the future regarding international payments, services to small and medium-sized enterprises (SMEs) while LienVietPostBank is offering a stake of more than 10 per cent to overseas buyers.

GIC is described as a “disciplined long-term value investor” and invests across an array of asset classes, including real estate, private equity, equities and fixed income. As at July 2016, the Sovereign Wealth Fund Institute estimates GIC has $344 billion (S$467 billion) of assets under management (AUM).

Vietcombank on January 12 reported a pre-tax profit of more than VND11 trillion ($482.5 million) in 2017, a rise of 32.9 per cent during the same period in the previous year and 16 per cent higher than its target.

Also Read: 

Singapore’s GIC forges $291m JV to develop residential properties in Mexico

Vietcombank sells Vietnam Airlines shares; Toong, BIM launch co-working ops in Laos

Vietcombank to offload 7.6m shares of Vietnam Airlines hopes to net $21.2m

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.