Customers who buy corporate bonds 'iBond' issued by Techcom Securities Company Limited can pledge them for a loan from this bank.
Vietnam Technological and Commercial Joint Stock Bank (Techcombank) has just reported to gain an extremely high pre-tax profit of nearly $224 million in the first half of 2018, almost double those of the same period last year.
A plan to increase the charter capital up to $1.53 billion from $504 million to become the third largest bank in Vietnam was approved in shareholders' extraordinary meeting of Techcombank held yesterday.
Techcombank's shares price was steeply reduced by 20 per cent to VND102,400 ($4.49) per share, lower than initial reference prices of VND128,000 ($5.6) making the bank's capitalization value dropped by nearly $1.32 billion.
The State Bank of Vietnam recently approved two leading commercial banks, namely VPBank and MB to raise its charter capital, the move being considered as necessity to increase their competitiveness and satisfy with standards of Basel II to control risks of credit, market and operation.
Techcombank’s value could be listed up to $900 million, making it the largest IPO in the Vietnam stock market.
The ambitious targets set by banks in 2018 forecast that the private banks will usurp the state owned commercial ones.
Warburg Pincus has recently reached a deal to invest about $370 million in Techcombank, marking the largest private equity deal in Vietnam so far.
Being a billionaire by owning billions of dollar of assets, many Vietnamese businesses use these assets to secure their loans or related companies at banks.
Techcombank has announced that two separate legal entities managed by Warburg Pincus will invest over US$370 million into the Bank, subject to appropriate regulatory approvals.
Publication permit No. 348/GP-BTTTT dated July 19, 2017, granted by the Ministry of Information and Communications of the Socialist Republic of Vietnam
Editor-in-Chief: Nguyen Cao Cuong
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