Bidv

Growing bad debts reaching hundreds of millions of US dollars keep pressuring BIDV, Vietcombank, and VietinBank. BIDV, Vietcombank, and Vietinbank keep shouldering hundreds of millions of US dollars in irrecoverable debts As of the end of June, the three banks’ total bad debts reached VND41.265 trillion ($1.79 billion), up 6.5 per cent against early 2019 and 22 per cent on-year. In addition, irrecoverable debts occupied more than half of their bad debts. BIDV ran the highest debt with VND21.121 trillion ($918.3 million), up 12.3 per cent against the beginning of this year. Especially, its irrecoverable debts accounted for 46 per cent of total bad debts, equaling VND10.492 trillion ($456.17 million), substandard loans rose by 12 per cent to VND6.105 trillion ($265.43 million), while doubtful debts fell by 27 per cent to VND4.524 trillion ($196.7 million). The rapidly expanding irrecoverable debt also raised BIDV’s bad debts to total outstanding loan balance from 1.9 … [Read more...] about BIDV, Vietcombank, and Vietinbank amass nearly $2 billion in bad debts

Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) has completed the sale of a 15% stake to South Korea’s KEB Hana Bank for 20.3 trillion dong ($875.00 million), it said on Monday. KEB Hana Bank’s parent Hana Financial Group said at the time the deal was announced in July that the BIDV stake would facilitate its entry into the Vietnamese market and secure sources for its mid- to long-term growth. BIDV, Vietnam’s second-largest listed bank with a market capitalization of $6.09 billion, has issued 603.3 million new shares for the stake sale, it said. Vietnam caps foreign ownership in local banks at 30%, but has allowed some overseas banks to open wholly-owned units. … [Read more...] about S.Korea’s Hana Bank completes $875 mln acquisition of 15% stake in Vietnam’s BIDV

BIDV, formally known as the Commercial Bank for Investment and Development of Vietnam, issued 603.3 million shares with a total value of nearly VND20.3 trillion ($875 million), in a private placement to KEB Hana Bank, the Vietnamese bank announced Monday. The $875 million deal is the biggest M&A transaction in Vietnam's banking industry so far. It has raised BIDV’s charter capital from VND34.19 trillion ($1.47 billion) to VND40.22 trillion ($1.74 billion), the highest registered charter capital of any bank in the industry. KEB Hana will hold onto this stake for at least five years, while providing BIDV with long-term support in areas such as strategic management banking development, tech systems, portfolio management, retail lending and human resources, according to the share sale agreement. "This strategic investment in BIDV will not only bring about operational efficiency in the bank but also boost its other activities such as cards, securities, capital, insurance, and … [Read more...] about South Korea’s Hana Bank acquires 15 pct stake in BIDV

BIDV and KEB Hana Bank sign a strategic cooperation agreement on Monday. — Photo courtesy of BIDV ​South Korea’s KEB Hana Bank has officially become a foreign strategic shareholder in the Bank for Investment and Development of Viet Nam (BIDV) following a cooperation agreement with the two sides inked on Monday. The agreement was signed under the witness of Vietnamese Deputy Prime Minister Vuong Dinh Hue and South Korean Ambassador to Viet Nam. KEB Hana Bank has completed the legal procedures regulated by laws of the two countries and owns 15 per cent of BIDV’s charter capital through acquiring 603.3 million shares worth VND20.3 trillion (US$872 million). After the share issue, BIDV’s charter capital increased from VND34.2 trillion to VND40.22 trillion ($1.73 billion) – the highest in the Vietnamese banking system. This is the biggest merger and acquisition (M&A) deal in Viet Nam's banking industry. KEB Hana Bank will hold shares for at least … [Read more...] about KEB Hana Bank becomes BIDV’s strategic shareholder

Leaders of BIDV and KEB Hana exchange the signed cooperation deal at the event on November 11 (Photo: VNA) Hanoi (VNA) – KEB Hana Bank of the Republic of Korea (RoK) has become a strategic shareholder of the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), helping the latter to have the biggest charter capital among Vietnamese banks. BIDV, one of the largest State-run commercial banks, held a ceremony on November 11 to announce its strategic shareholder and sign a cooperation deal with the RoK bank. Earlier, BIDV had issued more than 603 million shares, equivalent to 15 percent of its charter capital, under the form of private placement to KEB Hana. With a price of 33,640 VND per share, it gained nearly 20.3 trillion VND (875 million USD) from the issuance. After deducting issuance costs, BIDV collected nearly 20.21 trillion VND, raising its charter capital from nearly 34.19 trillion VND to 40.22 trillion VND and becoming the Vietnamese bank with … [Read more...] about KEB Hana named strategic shareholder of BIDV