In early August 2007, breaking news was announced: Eximbank had chosen Japanese Sumitomo Mitsui Banking Corporation (SMBC), one of the leading banks in the world, as its strategic partner. There are many more things that can be said about the cooperation.
The announcement about the cooperation between Vietnam’s Eximbank and Japan’s Sumitomo Mitsui was the fully satisfactory result of the quiet negotiations between the two sides.
It is clear that Eximbank has made a good deal, since Japanese banks are well known for their cautiousness and conservatism, always taking skeptical steps in doing business, and having perfect risk management skills. Japan is the country with the biggest number of banks in the world. This is the first time a Japanese bank has bought shares of a Vietnamese bank.
If comparing the Eximbank-SMBC deal with the deals of selling shares by other Vietnamese banks to foreign partners, one should see that the selling price of Eximbank proves to be the highest and most beneficial to the local bank in the context of share price slides and decreasing VN Index.
The deal of selling 15% of shares to the Japanese partner can bring Eximbank the huge sum of money of $225mil. The issuance price was 6.42 times higher than the share face value, and 10% lower than the market price at the issuance moment.
Money is not the only thing SMBC can bring to Eximbank. The Japanese bank will also bring support in technologies, and bank governance. In order to bring the support, SMBC will assign a representative to Eximbank, who will join the bank’s management board.
The move by Eximbank of choosing a leading Japanese bank as a strategic shareholder has been highly praised by other local banks, as it was a double move.
The move will allow Eximbank to improve its financial capability and upgrade its management skills. Moreover, it will help the bank better satisfy clients, and Vietnamese enterprises which do business and have relations with Japanese partners. Every one knows that Japan is one of Vietnam’s leading export markets, and one of its biggest trade, investment and tourism partners.
At this moment, Eximbank is also nearly wrapping up the deal on selling 10% of its shares to two foreign investment funds. The said deals would help Eximbank raise its chartered capital from VND2,800bil ($175mil) to VND3,733bil ($233.31mil) in 2007.
The capital surplus Eximbank can get after selling shares to foreign partners may reach VND5,600bil ($350mil). If counting the capital surplus the bank got when selling shares to 17 local partners, estimated at VND3,500bil ($218.75mil), Eximbank would get more than VND9tril ($568mil), enough to become the joint stock bank which has the biggest ownership capital and the bank which has the second biggest chartered capital in Vietnam.
It is expected that in 2008-2010, Eximbank will give dividends to shareholders and divide the fund of capital surplus with the minimum proportion of 35% per annum. By 2010, Eximbank’s chartered capital will reach VND13tril ($812.5mil) at minimum, the level that other banks will find it hard to reach.
With the big ownership and chartered capital, Eximbank will be able to follow its strategy on modernising technologies and initiating other investment plans.
More than one month ago, on June 20, 2007, Eximbank announced it reached an agreement to sell VND500bil of chartered capital to 17 domestic strategic shareholders, which are big economic groups. The selling price was 8-fold higher than the face value, worth VND4tril ($250mil).
The 17 strategic shareholders included big names like Generalexim 1, Asia Commercial Bank, Kinh Do Group and Saigon Trading Corporation.
The said move has also been praised by analysts: while other joint stock banks just have one or two domestic partners, Eximbank has chosen 17 big ones.
Source: VNE
Showing posts with label EXIMBANK. Show all posts
Showing posts with label EXIMBANK. Show all posts
Wednesday, August 08, 2007
Sunday, August 05, 2007
Eximbank to sell 15% stake to Japanese Bank
The Viet Nam Export Import Commercial Joint Stock Bank (Eximbank) plans to sell its 15 percent stake worth 225 million USD to Japanese strategic partner Sumitomo Mitsui Banking Corporation (SMBC).
The sell off is part of an Eximbank’s plan to raise its chartered capital by 25 percent to more than 3.7 trillion VND (233.3 million USD) from its current 2.8 trillion VND (175 million USD).
Under the plan, the bank will sell an additional 10 percent stake to foreign investment funds.
Eximbank General Director Pham Van Thiet said the bank will receive risk management and technical assistance from large banking and financial group SMBC.
Source: VNA
The sell off is part of an Eximbank’s plan to raise its chartered capital by 25 percent to more than 3.7 trillion VND (233.3 million USD) from its current 2.8 trillion VND (175 million USD).
Under the plan, the bank will sell an additional 10 percent stake to foreign investment funds.
Eximbank General Director Pham Van Thiet said the bank will receive risk management and technical assistance from large banking and financial group SMBC.
Source: VNA
Wednesday, July 25, 2007
Eximbank joins global trade finance programme
he Viet Nam Export Import Commercial Joint Stock Bank (Vietnam Eximbank), on July 25, signed an agreement with the International Finance Corporation (IFC) to join the IFC’s Global Trade Finance Programme (GTFP) as an issuing bank.
Joining the programme, Vietnam Eximbank will have better access to banks in the world to expand its operational markets and improve its competitiveness and service quality, particularly in the area of financing import-export.
The programme has so far admitted 105 member banks in 65 countries as confirming banks and 75 banks in 50 countries as issuing banks.
Source: VNA
Joining the programme, Vietnam Eximbank will have better access to banks in the world to expand its operational markets and improve its competitiveness and service quality, particularly in the area of financing import-export.
The programme has so far admitted 105 member banks in 65 countries as confirming banks and 75 banks in 50 countries as issuing banks.
Source: VNA
Thursday, June 21, 2007
Investors to buy stakes in Eximbank
The joint stock Viet Nam Export Import Bank (Eximbank) announced it plans to sell stakes to 16 strategic shareholders on June 20.
They include the Asia Commercial Bank (ACB), confectioner Kinh Do Group, Ban Viet Securities Investment Company, aviation service firm Sasco, and the Saigon Post and Telecommunication Company.
Together they will acquire 500,000 shares for 4 trillion VND (250 million USD), or at eight times their face value.
This strategic placement is part of the bank’s plan to increase its capital this year to 2.8 trillion VND (175 million USD) from 1.2 trillion VND (75 million USD), according to chairman Nguyen Thanh Long.
”Eximbank and its strategic partners will cooperate in various areas including products and services, clientele, and network,” he said, adding, for instance, non-banking partners would use Eximbank’s services. They would also make joint investments.
Source: VNA
They include the Asia Commercial Bank (ACB), confectioner Kinh Do Group, Ban Viet Securities Investment Company, aviation service firm Sasco, and the Saigon Post and Telecommunication Company.
Together they will acquire 500,000 shares for 4 trillion VND (250 million USD), or at eight times their face value.
This strategic placement is part of the bank’s plan to increase its capital this year to 2.8 trillion VND (175 million USD) from 1.2 trillion VND (75 million USD), according to chairman Nguyen Thanh Long.
”Eximbank and its strategic partners will cooperate in various areas including products and services, clientele, and network,” he said, adding, for instance, non-banking partners would use Eximbank’s services. They would also make joint investments.
Source: VNA
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
Vietnam Eximbank sells nearly 18% to strategic partners
The Vietnam Export-Import Bank (Eximbank) has sold 17.8% of its shares, worth VND4 trillion (US$248 million), to 17 strategic partners.
Several monster companies including Saigon Industrial Corp., PetroVietnam Finance Company, Asia Commercial Joint Stock Bank, Nguyen Kim Trade Center, the Saigon Trade Corporation, and Kinh Do Corp. were among the strategic partners.
The acquisition details were unavailable.
Before this acquisition, Vietnam’s largest confectioner Kinh Do Corp was Eximbank’s largest shareholder, holding a 6.42% stake, which the listed-confectioner had paid $90 million for.
The unlisted bank is considering selling a 30% stake under the central bank’s cap to foreign investors.
An Eximbank representative said the bank was targeting suitable foreign partners, placing a high priority on technology assistance and human resources that could help the bank achieve its goal of becoming the leading credit organization in Vietnam.
Temasek Holdings, an investment arm of Singapore government, has proposed to buy a 10% stake in the bank.
Founded in1989, the Eximbank has established correspondent banking relationship with more than 424 foreign banks in 49 countries enabling it to play an instrumental role in developing commercial financing and international trade.
It has a chartered capital of VND2.8 trillion ($175 million).
The bank has total assets of VND18.33 trillion ($1.1 billion), deposits of VND13.47 trillion, and a pre-tax profit last year of VND258.6 billion ($16 million).
Source: Thanh Nien
Several monster companies including Saigon Industrial Corp., PetroVietnam Finance Company, Asia Commercial Joint Stock Bank, Nguyen Kim Trade Center, the Saigon Trade Corporation, and Kinh Do Corp. were among the strategic partners.
The acquisition details were unavailable.
Before this acquisition, Vietnam’s largest confectioner Kinh Do Corp was Eximbank’s largest shareholder, holding a 6.42% stake, which the listed-confectioner had paid $90 million for.
The unlisted bank is considering selling a 30% stake under the central bank’s cap to foreign investors.
An Eximbank representative said the bank was targeting suitable foreign partners, placing a high priority on technology assistance and human resources that could help the bank achieve its goal of becoming the leading credit organization in Vietnam.
Temasek Holdings, an investment arm of Singapore government, has proposed to buy a 10% stake in the bank.
Founded in1989, the Eximbank has established correspondent banking relationship with more than 424 foreign banks in 49 countries enabling it to play an instrumental role in developing commercial financing and international trade.
It has a chartered capital of VND2.8 trillion ($175 million).
The bank has total assets of VND18.33 trillion ($1.1 billion), deposits of VND13.47 trillion, and a pre-tax profit last year of VND258.6 billion ($16 million).
Source: Thanh Nien
Wednesday, May 30, 2007
Banks want to trade gold via accounts
Commercial banks are trying to persuade the State Bank of Vietnam to allow them to make payments for gold trading in the domestic market via accounts instead of paying in cash and real gold as at present.
Gold trading has become one of the most lucrative businesses, which explains why more and more commercial banks are getting involved in this kind of business.
Banks now want to make payments for trading deals through accounts instead of cash, and trade virtual gold (gold on account) instead of real gold. The banks say this will help prevent risks for both sellers and buyers, while the State can control the money flow on the gold market.
Currently, gold trading deals all are being carried out in material gold and payments are not made through banks; therefore, no management authorities can control the trading volume. Gold traders may take unfair advantage of the loopholes in the law to evade tax, while the profit from gold trading proves to be very big.
Moreover, transactions with actual gold prove to be inconvenient for both sellers and buyers, and can lead to risks during the transportation process.
The Saigon Jewellery Company (SJC) has been allowed by the central bank to trade gold with foreign partners through offshore accounts. However, in Vietnam, SJC, which has its head office just several tens of metres from Vietcombank, cannot make payments through accounts when dealing with clients.
“It is illogical that gold is considered a kind of currency, but transactions via accounts are not allowed,” an official said.
SJC said that the company might apply to open transaction accounts at two banks, ACB and Eximbank, which will serve the company’s gold trading. However, one of the two banks said that it had not got permission from the central bank to accept SJC’s account.
Commercial banks insist that paying through accounts will benefit both banks and State management authorities. This will provide a tool which can ensure safety in trading deals, while the central bank can easily control the money flow.
However, financiers have warned that private gold trading companies may protest the plan to make payments via accounts. If the scheme on making payments via accounts is applied, the companies will have no way to evade tax.
Source: VNE
Gold trading has become one of the most lucrative businesses, which explains why more and more commercial banks are getting involved in this kind of business.
Banks now want to make payments for trading deals through accounts instead of cash, and trade virtual gold (gold on account) instead of real gold. The banks say this will help prevent risks for both sellers and buyers, while the State can control the money flow on the gold market.
Currently, gold trading deals all are being carried out in material gold and payments are not made through banks; therefore, no management authorities can control the trading volume. Gold traders may take unfair advantage of the loopholes in the law to evade tax, while the profit from gold trading proves to be very big.
Moreover, transactions with actual gold prove to be inconvenient for both sellers and buyers, and can lead to risks during the transportation process.
The Saigon Jewellery Company (SJC) has been allowed by the central bank to trade gold with foreign partners through offshore accounts. However, in Vietnam, SJC, which has its head office just several tens of metres from Vietcombank, cannot make payments through accounts when dealing with clients.
“It is illogical that gold is considered a kind of currency, but transactions via accounts are not allowed,” an official said.
SJC said that the company might apply to open transaction accounts at two banks, ACB and Eximbank, which will serve the company’s gold trading. However, one of the two banks said that it had not got permission from the central bank to accept SJC’s account.
Commercial banks insist that paying through accounts will benefit both banks and State management authorities. This will provide a tool which can ensure safety in trading deals, while the central bank can easily control the money flow.
However, financiers have warned that private gold trading companies may protest the plan to make payments via accounts. If the scheme on making payments via accounts is applied, the companies will have no way to evade tax.
Source: VNE
Friday, May 25, 2007
Gold exchange debuts in Vietnam
Vietnam’s first gold trading market opened Friday in Ho Chi Minh City.
It is jointly initiated by the Asia Commercial Joint Stock Bank (ACB), the Vietnam Export-Import Bank, Saigon Commercial Bank, and Saigon Jewelry Holding Co.
The bourse, based in the ACB office in district 10, will have a maximum 12 institutional members, all banks or firms licensed to trade gold.
JSC gold will be used for trading in the initial stages. The minimum trading volume is 10 taels (1 tael = 37.5 gm) and price changes are capped at VND5,000 per tael.
Initially, it will be limited to Vietnamese investors who must pay a security deposit of 10 percent of transaction value.
Globally gold slumped to a 10-week low and finished down nearly $10 an ounce in heavy trade Thursday, as a rising US dollar prompted funds and central banks to sell.
Analysts said larger-than-usual gold sales by global banks, particularly the European Central Bank, also weighed on gold prices besides sparking off selling pressure from funds and institutional investors.
Gold futures for June delivery on the New York Mercantile Exchange settled down $9.3, or 1.4 percent, at $653.3 an ounce, after touching a session low of $651.5, the weakest level since March 15.
In Vietnam too the price fell marginally to close at VND12.9 million Thursday.
Earlier this year international gold traders had estimated that gold would end up averaging around $753 in 2007 due to geopolitical tensions and high energy prices. Gold is a traditional hedge.
Nguyen Thanh Truc, deputy chairman of the Vietnam Association of Gold Trading, said the domestic gold market had seen unexpected volatility since mid-April on the back of global movements.
He forecast the precious metal to tumble in the near term as the International Monetary Fund planned to sell 400 tons.
Another 250 tons would be injected into the market by September by EU central banks.
He warned investors to be prudent while investing in gold.
The association has asked the central bank set up a gold bank to keep the country’s gold market in tune with the international bullion business.
The bank would provide support and consultancy for local gold businesses
Vietnam’s demand for bullion, used to produce jewelry, and some other forms of gold, is estimated at some 60 tons this year, up 20 percent against last year.
The central bank has permitted a total of 13 local banks to date to open accounts based overseas for the sole purpose of trading in gold .
Many domestic banks have shown an interest in gold trading as a means to diversify their services to retain a competitive edge as foreign rivals increasingly enter the Vietnamese market.
Source: Thanh Nien
It is jointly initiated by the Asia Commercial Joint Stock Bank (ACB), the Vietnam Export-Import Bank, Saigon Commercial Bank, and Saigon Jewelry Holding Co.
The bourse, based in the ACB office in district 10, will have a maximum 12 institutional members, all banks or firms licensed to trade gold.
JSC gold will be used for trading in the initial stages. The minimum trading volume is 10 taels (1 tael = 37.5 gm) and price changes are capped at VND5,000 per tael.
Initially, it will be limited to Vietnamese investors who must pay a security deposit of 10 percent of transaction value.
Globally gold slumped to a 10-week low and finished down nearly $10 an ounce in heavy trade Thursday, as a rising US dollar prompted funds and central banks to sell.
Analysts said larger-than-usual gold sales by global banks, particularly the European Central Bank, also weighed on gold prices besides sparking off selling pressure from funds and institutional investors.
Gold futures for June delivery on the New York Mercantile Exchange settled down $9.3, or 1.4 percent, at $653.3 an ounce, after touching a session low of $651.5, the weakest level since March 15.
In Vietnam too the price fell marginally to close at VND12.9 million Thursday.
Earlier this year international gold traders had estimated that gold would end up averaging around $753 in 2007 due to geopolitical tensions and high energy prices. Gold is a traditional hedge.
Nguyen Thanh Truc, deputy chairman of the Vietnam Association of Gold Trading, said the domestic gold market had seen unexpected volatility since mid-April on the back of global movements.
He forecast the precious metal to tumble in the near term as the International Monetary Fund planned to sell 400 tons.
Another 250 tons would be injected into the market by September by EU central banks.
He warned investors to be prudent while investing in gold.
The association has asked the central bank set up a gold bank to keep the country’s gold market in tune with the international bullion business.
The bank would provide support and consultancy for local gold businesses
Vietnam’s demand for bullion, used to produce jewelry, and some other forms of gold, is estimated at some 60 tons this year, up 20 percent against last year.
The central bank has permitted a total of 13 local banks to date to open accounts based overseas for the sole purpose of trading in gold .
Many domestic banks have shown an interest in gold trading as a means to diversify their services to retain a competitive edge as foreign rivals increasingly enter the Vietnamese market.
Source: Thanh Nien
Friday, May 11, 2007
Eximbank increases equity capital
The Vietnam Export-Import Commercial Bank, or Eximbank, has acquired the nod from the central bank to scale up its chartered capital to VND2.8 trillion from the current VND1.2 trillion via share issues.
As planned, the bank will issue more than 1.58 million shares with a face value of VND1 million each.
Late this month, it will use last year’s profit and surplus equities to issue over 657,700 shares to existing shareholders who were registered before December 31. They will be allowed to buy 54 shares for every 100 already held.
In July, Eximbank will also sell 368,000 shares at the face value to existing shareholders registered by June 22 this year, allowing them to obtain one new share for every five shares held.
The bank will issue more than 495,800 shares to local strategic partners at negotiated prices on the condition that these partners must hold 20 percent of their stakes for at least one year and the remainder for at least three years.
It will also issue 56,000 shares at the face value to its staff.
The lender obtained VND215 billion in pre-tax profits in the year’s first four months, a whopping 112 percent jump over the same period last year. Its total assets were VND19.3 trillion, up 62 percent year-on-year.
Source: Thanh Nien
As planned, the bank will issue more than 1.58 million shares with a face value of VND1 million each.
Late this month, it will use last year’s profit and surplus equities to issue over 657,700 shares to existing shareholders who were registered before December 31. They will be allowed to buy 54 shares for every 100 already held.
In July, Eximbank will also sell 368,000 shares at the face value to existing shareholders registered by June 22 this year, allowing them to obtain one new share for every five shares held.
The bank will issue more than 495,800 shares to local strategic partners at negotiated prices on the condition that these partners must hold 20 percent of their stakes for at least one year and the remainder for at least three years.
It will also issue 56,000 shares at the face value to its staff.
The lender obtained VND215 billion in pre-tax profits in the year’s first four months, a whopping 112 percent jump over the same period last year. Its total assets were VND19.3 trillion, up 62 percent year-on-year.
Source: Thanh Nien
Monday, April 09, 2007
Joint-stock banks report huge profits
A number of joint-stock commercial banks in Ho Chi Minh City reported multi-fold increases in gross profits for the first quarter of this year.
The Asia Commercial Bank (ACB) registered 413 billion VND in pre-tax profits, a 3.75 fold increase year on year. Its deposits rose by 80% and gross assets are valued at over 50.3 trillion VND.
The Saigon Commercial Bank (SACOMBANK) reported a 302 billion VND in pre-tax profits, almost doubling the figure it made in the first quarter of last year. Its gross asset value reached 28.6 trillion VND.
The Viet Nam Export-Import Bank (EXIMBANK) recorded 177 billion VND in gross profits, representing a year-on-year increase of 160%.
The Saigon Commercial Joint-stock Company (SCB) also reported a two-fold increase in gross profits which stood at 65 billion VND.
Source: VNA
The Asia Commercial Bank (ACB) registered 413 billion VND in pre-tax profits, a 3.75 fold increase year on year. Its deposits rose by 80% and gross assets are valued at over 50.3 trillion VND.
The Saigon Commercial Bank (SACOMBANK) reported a 302 billion VND in pre-tax profits, almost doubling the figure it made in the first quarter of last year. Its gross asset value reached 28.6 trillion VND.
The Viet Nam Export-Import Bank (EXIMBANK) recorded 177 billion VND in gross profits, representing a year-on-year increase of 160%.
The Saigon Commercial Joint-stock Company (SCB) also reported a two-fold increase in gross profits which stood at 65 billion VND.
Source: VNA
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