VPBank employees are about to receive 30.2 million ESOP shares

Vietnam Prosperity Joint Stock Commercial Bank ( VPBank - HoSE: VPB) recently announced Resolution No. 184/2023 on implementing the plan to issue treasury shares under VPBank's employee stock option program (ESOP).

Accordingly, VPBank will reserve 30,219,600 treasury shares to issue to employees, equivalent to the total issuance value at par value of VND 10,000/share of nearly VND 302.2 billion.

The issuance rate is 0.448%, equivalent to 0.45% of outstanding shares, for Vietnamese employees who meet the regulations on offering treasury shares under the employee stock option program. Non-executive Board members are not allowed to buy ESOP shares. The expected transaction time is from the third quarter of 2023.

The above shares will be restricted from transfer for 3 years and will be gradually released at a rate of 30% will be released after 1 year; 35% of shares will be released after 2 years and the remaining shares will be released after 3 years of issuance.

Finance - Banking - VPBank employees are about to receive 30.2 million ESOP shares — VPB stock performance over the past year (Source: Trading View).

Thus, the total amount of money raised from the offering is expected to be nearly VND302.2 billion, which will be used to supplement the bank's working capital. Vietcap Securities Joint Stock Company was appointed as the agent to carry out the treasury stock sale transaction.

After the end of the offering, if the staff do not purchase all the shares offered, the Board of Directors will decide to distribute the remaining shares to bank staff who meet the requirements of the Regulations on the offering of ESOP shares at a price not lower than VND 10,000/share or not continue the offering, only recording the actual number of registered purchases.

Currently, VPBank has 30,219,600 treasury shares with the most recent treasury stock purchase being in October 2019 and 6,713,204,001 outstanding shares. Accordingly, in this ESOP share issuance, the bank will offer all treasury shares for sale.

On September 10, Vietnam Prosperity Joint Stock Commercial Bank and the US International Development Finance Corporation (DFC) signed a bilateral loan commitment worth 300 million USD, equivalent to 7,200 billion VND with a term of 7 years.

The loan, arranged by DFC, aims to improve access to finance for small and medium-sized enterprises (SMEs), especially women-owned SMEs, and support green and sustainable projects in Vietnam.

Prior to the loan provided by DFC, VPBank had successfully mobilized many international financial loans. Specifically, at the end of 2022, VPBank successfully mobilized a syndicated loan worth 500 million USD from 5 financial institutions: Asian Development Bank (ADB), Sumitomo Mitsui Banking Corporation (SMBC), Japan International Cooperation Agency (JICA), ANZ Bank and Maybank Securities Pte. Ltd.

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