The Ho Chi Minh City-based Eastern Asia Bank plans to issue shares worth 1.2 trillion VND (70mio US$) this year to raise its chartered capital to 2 trillion VND.
The issue will be in two phases. In the first, the bank will issue 520 billion VND (32mio US$) worth shares to existing shareholders.
In the second phase, it will offer a 30% stake, worth 600 billion VND (37.5mio US$), to foreign investors.
The bank has also agreed to sell 10% to Citigroup Inc., the world’s biggest bank by market capitalization.
In Vietnam foreign holding in a bank by any single party is now capped at 10%. But if the limit is scrapped Citigroup will pick up a 29% stake in EAB.
If the limit is retained EAB said it would sell to other foreign partners.
Following the announcement, the EAB stock, traded on the over-the-counter-market, shot up to 42mio VND(2,598 US$) from 34mio VND (2,103 US$) last week.
EAB now is an agent for the US money transfer company MoneyGram. Money sent through MoneyGram’s network of 84,000 offices in 170 countries can now be received at EAB.
The bank is also an agent for some 40 other global money transfer companies and has reported payments from these enterprises at nearly 690mio US$ in 2005.
Source: Thanh Nien
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