Vietnam: Approving Vietcombank to increase charter capital to VND 55,800 billion? What is the application for an increase in charter capital?
- State Bank of Vietnam allows Vietcombank to increase charter capital to VND 55,800 billion?
- Which commercial bank has the largest charter capital in the banking system?
- What is the application for an increase in charter capital of joint stock commercial bank from the conversion of convertible bonds, additional charter capital?
State Bank of Vietnam allows Vietcombank to increase charter capital to VND 55,800 billion?
Recently, the State Bank of Vietnam issued Official Dispatch No. 3924/NHNN-TTGSNH in 2023 approving the request to increase charter capital of Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), specifically as follows:
Approving the increase of charter capital of Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) from VND 47,325 billion to VND 55,891 billion, according to the plan to issue shares to pay dividends from the remaining profit in 2019, 2020 approved by the General Meeting of Shareholders.
Thus, within a maximum of 10 working days from the date of completion of the issuance of shares in accordance with the law, Vietcombank will carry out procedures for amending and supplementing the License for Establishment and Operation in accordance with the provisions of Clause 4, Article 11 of Circular No. 50/2018/TT-NHNN dated December 31, 2018 of the Governor of the State Bank of Vietnam providing for applications and procedures for granting approval for changes of commercial banks and foreign branch banks.
View the full written approval of Vietcombank's charter capital increase: Click here.
Vietnam: Approving Vietcombank to increase charter capital to VND 55,800 billion? What is the application for an increase in charter capital? (Image from the Internet)
Which commercial bank has the largest charter capital in the banking system?
According to the announcement at the website of the State Bank of Vietnam, the bank owning the highest charter capital currently is VPBank with a total charter capital of VND 79,339 billion.
The next one is the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) with a total charter capital of VND 61,500 billion.
After the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) was approved for the charter capital increase plan, Vietcombank was the bank with the third highest charter capital after VPBank and BIDV.
What is the application for an increase in charter capital of joint stock commercial bank from the conversion of convertible bonds, additional charter capital?
Pursuant to Clause 1, Article 11 of Circular No. 50/2018/TT-NHNN stipulating as follows:
Increase in charter capital of joint stock commercial bank from the conversion of convertible bonds, additional charter capital reserve fund, share premium, retained earnings and other funds prescribed by law
1. An application includes:
a) An application form, which contains at least:
(i) Necessity for increase in charter capital;
(ii) Current charter capital, specifying the number of common shares, preference shares and treasury stocks; expected increase in charter capital;
(iii) Sources used for increasing charter capital;
(iv) Expected date of completing the increase in charter capital;
b) A resolution or decision of the General meeting of shareholders on approval for plan for increase in the charter capital of joint stock commercial bank from convertible bonds, additional charter capital reserve fund, share premium, retained earnings and other funds prescribed by law;
c) The plan for increase in charger capital specified in Point b of this Clause shall contain at least:
(i) A plan for conversion of bonds into stocks, which includes: information about issued convertible bonds: number, face value and term of bonds; information about expected conversion of bonds into stocks: number of bonds, face value of bonds and rate of conversion (in case of increase in charter capital from conversion of convertible bonds into common stocks);
(ii) Information about the additional charter capital reserve fund, share premium, retained earnings and other funds determined according to the auditing result given by an independent audit firm; information about the amount of money from additional charter capital reserve fund, share premium, retained earnings and other funds which is used to increase charter capital (in case of increase in charter capital from the additional charter capital reserve fund, share premium, retained earnings and other funds);
(iii) A list of shareholders and holdings of shareholders that own shares whose value is at least 5% of voting share capital and of charter capital before and after the increase; list of shareholders and their related persons that own shares whose value is at least 20% of charter capital before and after the increase. These lists must include identity information (in case of an individual: full name and number of ID card or Citizen ID card or passport, place of issue, date of issue; in case of an organization: name of the organization, enterprise ID number, address of headquarters, full name of its legal representative, number of his ID card or Citizen ID card or passport, place of issue, date of issue) of shareholders and their related persons in accordance with regulations of law;
(iv) Information about the total holdings of foreign investors before and after the increase in charter capital.
Thus, the application for an increase in charter capital of joint stock commercial bank from the conversion of convertible bonds, additional charter capital reserve fund includes the above documents.
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