With a successful issuance, VPBank raised 35,900 billion VND.

20/10/2023 15:48

VPBank has just announced the completion of a private placement of 15% of its shares to Sumitomo Mitsui Banking Corporation (SMBC, Japan), officially making SMBC a strategic shareholder.

VPB has just completed a $1.5 billion deal with SMBC.

VPBank reached a private placement agreement with strategic partner SMBC at the end of March 2023. Accordingly, the bank offered over 1.19 billion shares to SMBC. The total value of the issuance reached over VND 35,900 billion (equivalent to nearly USD 1.5 billion). All shares issued to the strategic partner will be subject to a 5-year transfer restriction. 10% of the offering value was deposited by SMBC just before the bank's annual general meeting in April 2023. Approximately 90% of the remaining value of the transaction will be recorded in the bank's equity immediately after the transaction is completed.

Following the completion of this transaction, VPBank's total equity will increase from VND 103.5 trillion to nearly VND 140 trillion. The bank's capital adequacy ratio (CAR), according to calculations by the international credit rating agency Moody's, will rise to nearly 19%, leading among Vietnamese banks assessed by the organization.

Source: https://www.sggp.org.vn/phat-hanh-thanh-cong-vpbank-thu-ve-35900-ty-dong-post710622.html