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Vietinbank eyes $1 billion in capital
Vietinbank (HOSE: CTG) plans to raise its charter capital by up to 65 per cent to VND20-25 trillion (US$1.22 billion) by the end of this year, Chairman Pham Huy Hung told the annual shareholder meeting in Ha Noi on May 31.
Vietinbank, the second largest lender in Viet Nam by charter capital, also eyes to increase its charter capital four-fold to $4 billion with total assets of $70 billion by 2015.
Vietinbank last year missed the target of raising its charter capital to VND18-20 trillion ($878-975 million) by the end of the year due to delayed foreign investor's capital contribution.
When the International Finance Corporation (IFC), a financial arm of the World Bank, finalised its 10 per cent stake deal by the end of March this year, Vietinbank's charter capital increased to VND18.17 trillion ($886.48 million).
This year, the Ha Noi-based bank targets to fetch VND5.1 trillion ($248.78 million) in pre-tax profit from VND4.6 trillion ($224.39 million) last year and control its bad debt ratio at under 3 per cent.
In a report to shareholders, Vietinbank aims to pay a dividend of 16 per cent, however, chairman Hung said that the bank would try hard to pay up to 20 per cent this year.
Hung said that Vietinbank was in a negotiation process with Canadian bank Nova Scotia under the consultancy of JP Morgan and a 15 per cent stake deal was expected to be struck this year.
The bank also plans to raise up to $1 billion in an overseas bond issue in the latter part of this year to finance projects and enhance capital for business. The bond will have a maturity of 5-10 years. The Ha Noi-based bank is considering to offer the bond to Asian and European investor groups (Excluding investors in the US) or global investors. Vietinbank's share yesterday was up 2.7 per cent to VND26,900 each.
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