Joint Stock Commercial Bank for Foreign Trade of Vietnam (“Vietcombank”) has completed a private placement of 111,108,873 new shares to Singapore’s sovereign wealth fund, GIC Private Limited (“GIC”), and one of Japan’s largest financial services provider, Mizuho Bank Ltd (“Mizuho”), raising a total of around US$265 million equity investment.
GIC has purchased 94,442,442 new shares and now owns a 2.55% stake in Vietcombank, Vietnam’s largest bank by market capitalization. Mizuho has purchased additional 16,666,431 new shares to maintain its existing 15.0% stake in Vietcombank. The equity investment by GIC and Mizuho increases Vietcombank’s charter capital to about US$1.6 billion. and allows the bank to meet capital requirements under Basel II Accord as well as maintain its leading position in the Vietnamese banking sector.
“This transaction not only represents an important milestone for the new co-operation between GIC and Vietcombank, but also the continued and committed support from our existing partnership with Mizuho. This successful equity raising transaction supports Vietcombank’s strong momentum and performance to achieve our goals,” says Nghiem Xuan Thanh, chairman, Vietcombank Board of Directors.
Credit Suisse acted as sole placement agent and financial advisor to Vietcombank on the transaction.
“We are delighted to work with Vietcombank to bring in new capital and another strong shareholder partner like GIC, having successfully advised Vietcombank on its previous strategic sale to Mizuho. This transaction demonstrates continued international investor interest in Vietnam,” says Helman Sitohang, chief executive officer, Asia Pacific at Credit Suisse.
YKVN, Vilaf and Allen & Overy acted as the legal advisors on the transaction.