Recently, Saigon – Hanoi Bank (SHB) has obtained approval from the State Bank of Vietnam to pay dividend in the form of shares to existing shareholders.
On December 27, 2019, the State Bank of Vietnam (SBV) has approved SHB’s proposal to raise its charter capital from VND 12,036 billion to over VND 14,550 billion in the form of dividend payment for 2017 and 2018 by shares, which is to be made from retained earnings as at December 31, 2018. Accordingly, SHB shall issue more than 251.4 million shares (equivalent to VND 2,514 billion at par value) to pay dividend to share holders at the ratio of 20.9%.
Previously, SBV has also issued an official letter approving SHB’s charter capital increase by VND 3,000 billion in the form of issuing additional shares to existing shareholders. This charter capital increase plan has been approved by General Assembly of Shareholders of SHB in Resolution No. 01/NQ-DHDCD dated April 23, 2019. In order to raise capital, SHB shall issue nearly 300.8 million shares to its existing shareholders.
Thus, by paying dividends in the form of shares and issuing shares to the public, SHB will increase its charter capital by VND 5,500 billion to more than VND 17,500 billion (equivalent to an increase of over 45%). The purpose of SHB’s capital increase is to meet Basel II standards by 2020, boosting investment in information technology as well as improving financial capacity to expand the Bank’s competitiveness during the process of international economic integration.