Banks, especially small-sized ones, are bidding to attract more equity funds to ensure they can survive the stiffer competition in the marketplace.
The Nam Viet Commercial Joint-Stock Bank, or Navibank, will double its charter capital to VND1tril (US$62.5mil) soon as it has already got the go-ahead from the central bank. Its target for the end of this year, however, is VND1.5tril.
Navibank will channel the new funds to its branches and offices given its plans to expand its network to 70 transaction locations by the year-end from the current 40.
Like Navibank, the Vietnam Bank for Private Enterprises, or VPBank, has almost fulfilled necessary procedures to double its charter capital to VND1.5tril. Still, it is looking to VND2tril in all this year.
VPBank will then pump more money into its securities arm to lift the broker's capital to VND300bil from the current VND50bil.
Smaller in scale the Gia Dinh Bank has registered its new capital at VND320bil-plus, up from the previous VND210bil.
Last month, the central bank's HCMC branch allowed three other lenders to double their charter capital, so the new figure at the An Binh Bank is VND2.3tril, the Viet A Bank VND1.125tril and the HCMC Housing Development Bank VND1tril.
The Asia Commercial Bank (ACB) is now Vietnam's largest join-stock lender with VND2.53tril in charter capital, followed by the Saigon Thuong Tin Commercial Bank (Sacombank) with VND2.34tril.
However, Sacombank will overtake ACB soon as it is finalizing the paperwork to register its new capital at VND4.45tril, although ACB has plans to reach VND2.63tril by the year-end.
Source: VNE
Showing posts with label ABBank. Show all posts
Showing posts with label ABBank. Show all posts
Thursday, August 02, 2007
Monday, July 30, 2007
Vietnam bank to underwrite VND720 bln bond
The telecoms arm of dominant utility Vietnam Electricity (EVN) group has signed a contract for a domestic bank to underwrite a VND720 billion (US$44.6 million) corporate bond, local media reported Saturday. EVN Telecom's bond might raise more funds than the offer thanks to investor's interest, An Binh Bank's Chief Executive Luu Duc Khanh was quoted by the Liberation Saigon daily as saying, after EVN Telecom signed the contract with An Binh Bank on Friday.
"In such case, we are allowed to raise an extra 20 percent above the target," he said, but gave no details of the bond.
Hanoi-based EVN Telecom is one of three providers of CDMA technology-based mobile phone services in the communist-run Southeast Asian country. It also develops wireless landline phones and provides Internet access.
In April, EVN Telecom said the company and Singapore's VSNL International would build part of a $200-million pan-Asian submarine optic cable which would link Singapore, the Philippines, Japan, Hong Kong and Guam when operational in the first quarter of 2008.
In March, Moody's upgraded the outlook for both Vietnam's foreign currency bonds and local currency bonds to positive from stable. It has a Ba3 rating on the country's dong debt.
Source: Thanh Nien
"In such case, we are allowed to raise an extra 20 percent above the target," he said, but gave no details of the bond.
Hanoi-based EVN Telecom is one of three providers of CDMA technology-based mobile phone services in the communist-run Southeast Asian country. It also develops wireless landline phones and provides Internet access.
In April, EVN Telecom said the company and Singapore's VSNL International would build part of a $200-million pan-Asian submarine optic cable which would link Singapore, the Philippines, Japan, Hong Kong and Guam when operational in the first quarter of 2008.
In March, Moody's upgraded the outlook for both Vietnam's foreign currency bonds and local currency bonds to positive from stable. It has a Ba3 rating on the country's dong debt.
Source: Thanh Nien
Friday, July 27, 2007
Banks report robust growth in deposits
Ho Chi Minh City-based banks have reported an average growth of 65.7 percent in deposits mobilised in the first seven months, recording over 377.5 trillion VND.
While deposits in VND posted a 80 percent year-on-year increase. Deposits in foreign currencies accounted for 27.2 percent of the total addition of bank deposits, and saw a year-on-year increase of 36.4 percent.
Economists attributed the recent surge to the “cooling down” period of the stock market as people have shifted to bank deposits for their iddle money.
Rising interest rates in hard currencies by a massive number of banks made another attribution to the rosy situation. The Saigon Thuong Tin Joint Stock Commercial Bank (Sacombank) has sparked the trend with its annual interest rate up to 5 percent. The An Binh Bank took the lead in this term by raising the interest rate to 5.42 percent for saving deposits of 11 month term.
As a result, savings deposits and banking certificates have brought in almost 150 trillion VND, making up 39.7 percent of the municipal banking new deposits tally and representing an increase of 43.5 percent over a year ago.
On the other hand, banks have launched a number of new services such as payment cards and expanded their offices and branches down to every corner of the city to facilitate depositing or loaning transactions.
The entire banking system in the nation’s largest economic hub has managed to disburse over 291 trillion VND in loans up to early July, representing a year-on-year increase of 48.4 percent.
Source: VNA
While deposits in VND posted a 80 percent year-on-year increase. Deposits in foreign currencies accounted for 27.2 percent of the total addition of bank deposits, and saw a year-on-year increase of 36.4 percent.
Economists attributed the recent surge to the “cooling down” period of the stock market as people have shifted to bank deposits for their iddle money.
Rising interest rates in hard currencies by a massive number of banks made another attribution to the rosy situation. The Saigon Thuong Tin Joint Stock Commercial Bank (Sacombank) has sparked the trend with its annual interest rate up to 5 percent. The An Binh Bank took the lead in this term by raising the interest rate to 5.42 percent for saving deposits of 11 month term.
As a result, savings deposits and banking certificates have brought in almost 150 trillion VND, making up 39.7 percent of the municipal banking new deposits tally and representing an increase of 43.5 percent over a year ago.
On the other hand, banks have launched a number of new services such as payment cards and expanded their offices and branches down to every corner of the city to facilitate depositing or loaning transactions.
The entire banking system in the nation’s largest economic hub has managed to disburse over 291 trillion VND in loans up to early July, representing a year-on-year increase of 48.4 percent.
Source: VNA
AB Bank to be PC1's one and only
An Binh Joint Stock Commercial Bank (AB Bank) will act as the primary provider of financial services for Power Company No1 (PC1) under an agreement signed yesterday in the capital.
"I do believe that this co-operation will bring more opportunities for both of us in terms of supporting investment capital, expanding operational networks, diversifying business sectors and exploiting each other’s advantages," said AB Bank general director Luu Duc Khanh.
The bank will provide PC1 a credit limit of VND300 billion (US$18.75 million). AB Bank will lend staff of PC1 money to buy shares in the power company and its subsidiaries. The bank will also provide home and car loans to workers.
In return, PC1 could open letter credit at AB Bank with an underwriting investment limit of $17 million.
The power company will help AB Bank to set up an operational network in all the provinces the firm covers. The bank expects to open more 12 offices nation-wide by the end this year.
"The economic alliance is in line with the new development trend of economic integration. I hope with this co-operation, we will together enhance our positions in the local market," said director of PC1 Nguyen Phuc Vinh.
Source: VNS
"I do believe that this co-operation will bring more opportunities for both of us in terms of supporting investment capital, expanding operational networks, diversifying business sectors and exploiting each other’s advantages," said AB Bank general director Luu Duc Khanh.
The bank will provide PC1 a credit limit of VND300 billion (US$18.75 million). AB Bank will lend staff of PC1 money to buy shares in the power company and its subsidiaries. The bank will also provide home and car loans to workers.
In return, PC1 could open letter credit at AB Bank with an underwriting investment limit of $17 million.
The power company will help AB Bank to set up an operational network in all the provinces the firm covers. The bank expects to open more 12 offices nation-wide by the end this year.
"The economic alliance is in line with the new development trend of economic integration. I hope with this co-operation, we will together enhance our positions in the local market," said director of PC1 Nguyen Phuc Vinh.
Source: VNS
Saturday, June 16, 2007
What lies behind enterprise-bank cooperations?
The quickest way for enterprises to enter the financial market is to join hands with banks, while banks find it easiest to attract more clients if they cooperate with enterprises.
Big corporations and bankers nowadays tend to ‘shake hands’ in multifaceted cooperation agreements. Joint stock banks aim to attract more clients when they choose strategic shareholders. Experts have said that this is the quickest way to grab the market share that they had not got before.
Eximbank’s Director General Pham Van Thiet said that bankers and big corporations cooperated with each other in order to take full advantage of the client networks and services of the partners.
For example, Eximbank has signed an agreement with Kinh Do Group, under which, the bank can use the network of the group to offer more services to more clients. A large number of Kinh Do’s clients will use Eximbank’s services.
With the same goal, Eximbank has at the same time signed cooperation agreements with 16 local partners which operate in different fields. The total share value the bank has sold to its strategic shareholders has reached VND500bil ($31.25mil).
As for enterprises, which once found it very hard to access bank loans, they can more easily get loans after joining hands with banks.
Nevertheless, it is quite difficult to find suitable partners. A banker said that it took him many years to find a partner who could meet the requirements on capital, business vision, business network, and most importantly, had suitable development plans.
Under the new agreement signed between the Vietnam Post and Telecommunication Group (VNPT) and the Vietnam Industrial and Commercial Bank (Incombank), the two sides will move ahead with cooperation activities, make capital contributions and support each other in expanding and developing many business fields.
Similarly, 16 partners of Eximbank have promised to use each others’ services and make investment cooperation deals. Moreover, experts have said, enterprises all aim to hold bank shares to enter the financial market, which is very hot nowadays. Bach Viet and PC2, for example, have inked cooperation deals with An Binh Bank.
The financial market is so hot that 20 more applications to set up banks have been submitted to the State Bank of Vietnam, while foreign investors are also seeking to make investment in Vietnamese banks.
Source: VNE
Big corporations and bankers nowadays tend to ‘shake hands’ in multifaceted cooperation agreements. Joint stock banks aim to attract more clients when they choose strategic shareholders. Experts have said that this is the quickest way to grab the market share that they had not got before.
Eximbank’s Director General Pham Van Thiet said that bankers and big corporations cooperated with each other in order to take full advantage of the client networks and services of the partners.
For example, Eximbank has signed an agreement with Kinh Do Group, under which, the bank can use the network of the group to offer more services to more clients. A large number of Kinh Do’s clients will use Eximbank’s services.
With the same goal, Eximbank has at the same time signed cooperation agreements with 16 local partners which operate in different fields. The total share value the bank has sold to its strategic shareholders has reached VND500bil ($31.25mil).
As for enterprises, which once found it very hard to access bank loans, they can more easily get loans after joining hands with banks.
Nevertheless, it is quite difficult to find suitable partners. A banker said that it took him many years to find a partner who could meet the requirements on capital, business vision, business network, and most importantly, had suitable development plans.
Under the new agreement signed between the Vietnam Post and Telecommunication Group (VNPT) and the Vietnam Industrial and Commercial Bank (Incombank), the two sides will move ahead with cooperation activities, make capital contributions and support each other in expanding and developing many business fields.
Similarly, 16 partners of Eximbank have promised to use each others’ services and make investment cooperation deals. Moreover, experts have said, enterprises all aim to hold bank shares to enter the financial market, which is very hot nowadays. Bach Viet and PC2, for example, have inked cooperation deals with An Binh Bank.
The financial market is so hot that 20 more applications to set up banks have been submitted to the State Bank of Vietnam, while foreign investors are also seeking to make investment in Vietnamese banks.
Source: VNE
Friday, June 15, 2007
EVN to form finance arm for debt issues
Vietnam Electricity, the country's dominant power utility, plans to establish a financial company to raise funds for energy investments by issuing bonds and other securities.
The new unlisted group, to be named Electricity Finance Joint Stock Company, will be established this month provided it wins approval from the central bank, Vietnam Electricity said in a statement.
"The company will issue corporate bonds to serve investment needs of the power sector. It will also issue bonds, certificates of deposit and other papers to raise funds from domestic and foreign sources," the statement said.
Vietnam Electricity executives have said the Hanoi-based group needed $3 billion to $4 billion per year in the next three years to build power plants and a grid network to meet soaring demand fuelled by Vietnam's rapid economic growth.
The group plans to issue VND8 trillion of bonds this year, up from last year's VND6 trillion.
The new firm will have an initial capital of VND3 trillion ($186 million), Vietnam Electricity said.
The group will own 90 percent of its financial arm while the remaining 10% will be split between partly private An Binh Bank and Toan Cau Insurance Co.
Other economic conglomerates such as state oil and gas group Petrovietnam and the Vietnam Textiles and Garments group have established their own finance arms.
Source: Thanh Nien
The new unlisted group, to be named Electricity Finance Joint Stock Company, will be established this month provided it wins approval from the central bank, Vietnam Electricity said in a statement.
"The company will issue corporate bonds to serve investment needs of the power sector. It will also issue bonds, certificates of deposit and other papers to raise funds from domestic and foreign sources," the statement said.
Vietnam Electricity executives have said the Hanoi-based group needed $3 billion to $4 billion per year in the next three years to build power plants and a grid network to meet soaring demand fuelled by Vietnam's rapid economic growth.
The group plans to issue VND8 trillion of bonds this year, up from last year's VND6 trillion.
The new firm will have an initial capital of VND3 trillion ($186 million), Vietnam Electricity said.
The group will own 90 percent of its financial arm while the remaining 10% will be split between partly private An Binh Bank and Toan Cau Insurance Co.
Other economic conglomerates such as state oil and gas group Petrovietnam and the Vietnam Textiles and Garments group have established their own finance arms.
Source: Thanh Nien
Tuesday, May 29, 2007
ABBank increases capital
An Binh Commercial Joint Stock Bank, or AB Bank continues to seek the nod from the State Bank of Vietnam (SBV) for a new capital injection plan after being rejected mid-month due to a reportedly opaque dossier.
The bank’s spokesman said it had given a clear explanation to the central bank about the plan to more than triple its chartered capital to VND5 trillion from VND1.13 trillion this year via a share issue.
He added that the bank would not lower the set capital increase.
Capital expansion should be carried out in phases and approval for any capital increase phase must be based on the efficiency of the preceding phase, the central bank said.
The bank said in 2007-10 it could see growth of 250 percent to 300 percent in outstanding loans and profit, as well as open 20 to 30 units nationwide, which would require a massive capital injection.
AB Bank had earlier submitted an application to the HCMC branch of the SBV for a convertible bond issue worth VND5 trillion this year and next.
The bonds, at a face value of VND100,000, are to have two terms of 12 and 18 months, and will be converted into maturity shares.
Mobilized funds from the bond issue will be used to invest in the power sector and AB Bank.
It plans to scale up its chartered capital to VND7.5 trillion by late 2008 and VND10 trillion by late 2009 from the convertible bonds.
Source: Thanh Nien
The bank’s spokesman said it had given a clear explanation to the central bank about the plan to more than triple its chartered capital to VND5 trillion from VND1.13 trillion this year via a share issue.
He added that the bank would not lower the set capital increase.
Capital expansion should be carried out in phases and approval for any capital increase phase must be based on the efficiency of the preceding phase, the central bank said.
The bank said in 2007-10 it could see growth of 250 percent to 300 percent in outstanding loans and profit, as well as open 20 to 30 units nationwide, which would require a massive capital injection.
AB Bank had earlier submitted an application to the HCMC branch of the SBV for a convertible bond issue worth VND5 trillion this year and next.
The bonds, at a face value of VND100,000, are to have two terms of 12 and 18 months, and will be converted into maturity shares.
Mobilized funds from the bond issue will be used to invest in the power sector and AB Bank.
It plans to scale up its chartered capital to VND7.5 trillion by late 2008 and VND10 trillion by late 2009 from the convertible bonds.
Source: Thanh Nien
Saturday, May 26, 2007
ABBank to finance power plant
An Binh Bank (ABBank) will finance construction of Power Co No 2's Central Hydroelectric Project to the tune of 150 billion VND (9.37 million USD), under an agreement signed on May 24.
ABBank will also provide financial services for Power Co No 2 (PC2) and its employees. In return, PC2 would assist the bank in its marketing services to the PC2 customer base of 3 million households as well as commit to create favourable conditions for further expanding the bank's network nationwide.
In the later part of this year, the bank plans to open 15 transaction offices in southern provinces served by PC2's network.
"I think that the agreement is an initial step toward further cooperation," said ABBank general director Luu Duc Khanh. "The agreement not only opens more investment opportunities for us but also improves and confirms our competitive position in the market."
Source: VNA
ABBank will also provide financial services for Power Co No 2 (PC2) and its employees. In return, PC2 would assist the bank in its marketing services to the PC2 customer base of 3 million households as well as commit to create favourable conditions for further expanding the bank's network nationwide.
In the later part of this year, the bank plans to open 15 transaction offices in southern provinces served by PC2's network.
"I think that the agreement is an initial step toward further cooperation," said ABBank general director Luu Duc Khanh. "The agreement not only opens more investment opportunities for us but also improves and confirms our competitive position in the market."
Source: VNA
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