Vietinbank to issue additional shares to raise charter capital

Vietinbank to issue additional shares to raise charter capital

Nhan Dan Online - Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank) has announced that it will issue additional shares early next month to raise its charter capital for the first phase in 2010. Accordingly, Vietinbank will allocate 76.9 million shares as paid dividends to existing shareholders at the rate of 6.83%, and offer 315.1 million shares to these shareholders with an applied rate of 28% at VND 10,000 per share. The VND 769 billion (US$40.6 million) to be used for paying dividends in shares will be taken from the 2009 net profit after the bank finishes setting up standby funds in accordance with the current laws and regulations. The bank plans to use the capital raised to provide credit for its customers, expand its banking network, upgrade infrastructure and technology, and invest in joint ventures. The capital increase also aims to maintain its annual ratio of charter capital to total assets at 8% when its total assets are increasing sharply and are expected to reach around VND 350 trillion (US$18.4 billion) later this year, a 40% increase over last year. The bank plans to sign a contract on October 10 this year to sell 10% of its stock worth around US$190 million to its strategic foreign partner, the International Finance Company (IFC).