VP Bank reached an agreement to sell 15% of its charter capital to SMBC Bank of Japan

DNHN - VPBank has reached an agreement to sell 15% of its stock to Sumitomo Mitsui Banking Corporation (SMBC), a subsidiary of Japan's Sumitomo Mitsui Financial Group, Inc (SMFG)

SMBC's investment will increase VPBank's tier 1 capital by 35.9 trillion dongs, bringing the bank's total equity from 103.5 trillion dongs to approximately 140 trillion dongs. This investment agreement is part of a capital increase plan that VPBank has implemented since 2022 to bolster its long-term financial capacity and assist the bank in achieving its five-year strategic growth objective.

Moreover, the investment agreement signed between VPBank and SMBC has demonstrated their close cooperation and mutual trust. Before May 2022, both parties had signed a Business Cooperation Agreement. SMBC Consumer Finance Company - a subsidiary of SMFG - acquired a 49 percent stake in FE Credit, a subsidiary of VPBank, at the end of 2021.

Following SMBC's latest strategic investment, VPBank will become the second-largest bank in Vietnam by equity. This enables VPBank to have the sufficient financial strength to meet the needs of all strategic customer segments, including individual customers and small and medium-sized businesses. The large capital base also enables VPBank to serve large-scale corporate clients, including FDI enterprises and multinational corporations that are and will invest in Vietnam.

As a strategic investor, SMBC will contribute to VPBank's growth by sharing the group's accumulated knowledge and experience in numerous Asian markets. Digital transformation is also expected to accelerate after SMBC joins VPBank's operations to provide VPBank with banking products and services that meet its customer’s needs and preferences.

In addition, it is anticipated that this strategic investment agreement will attract and encourage FDI investors from the list of more than 200,000 multinational corporations and large enterprises worldwide. SMBC Group and SMBC Bank should investigate and expand their investment in Vietnam. These corporations may become potential customers of VPBank in the future if they invest in Vietnam.

Through a local bank such as VPBank, this group can strengthen SMBC's presence and provide capital for large domestic investment projects, particularly in areas of interest to the corporation, such as infrastructure construction, green growth, and environmentally friendly, and sustainable development business projects.

For additional information, please visit https://www.vpbank.com.vn.

Hanh Nguyen