VPBank to soon make dividend payment at 80pct

21-Sep-2021 Intellasia | Dau tu Online | 5:02 AM Print This Post

The State Bank of Vietnam (SBV) has just issued official document approving Vietnam Prosperity Commercial Joint Stock Bank (VPBank) to increase charter capital to a maximum of 19,757,987,000,000 dong (80 percent higher than the current charter capital).

The capital increase is implemented in the form of issuing shares to pay dividends from the undistributed profits and issuing shares to increase charter capital from the investment and development fund and reserve fund to supplement charter capital. The plan was approved by VPBank’s shareholders.

At the request of the SBV, VPBank is responsible for the increase of charter capital in accordance with the provisions of law.

Thus, VPBank only needs the approval of the State Securities Commission (SSC) and then is able to complete all procedures to increase charter capital to nearly 45.058 trillion dong. Under the plan approved by the bank’s Board of directors, VPBank will issue 1.97 billion shares to shareholders at the rate of 80 percent of the total outstanding shares at the time of closing the right to receive dividends.

In particular, the rate of share issuance for dividend payment is 62.15%, which means that shareholders holding 10,000 ordinary shares will receive an addition of 6,125 new shares. This is equivalent to a total of 1.23 billion shares.

The rate of issuing bonus shares is 17.85%, which means that shareholders owning 10,000 ordinary shares will receive an addition of 1,785 new shares. This is equivalent to a total of 747.84 million bonus shares.

Previously, talking to investors, leader of VPBank said that after receiving approvals of the SBV and the SSC, VPBank will announce the closing date for the list of shareholders, which is expected in September 2021.

VPBank also expects to record an extraordinary income of nearly 30 trillion dong from the sale of 49 percent stake of FE Credit to the Japanese partner SMBC.

According to VPBank’s capital increase roadmap, by 2022, the bank will significantly increase its charter capital from the current 25.3 trillion dong to 75 trillion dong from three main sources. Firstly, the bank will earn nearly 1.4 billion US dollars from the sale of 49 percent capital at FE Credit to SMBC. Secondly, the bank will issue nearly two billion shares worth nearly 20 trillion dong from dividends and share premium (equivalent to a total rate of 80%). Thirdly, the bank will carry out a private placement at the rate of 15 percent to foreign strategic shareholders.


Category: Finance, Vietnam

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