Recently, State Bank of Vietnam (SBV) has issued Document No. 9693/NHNN-TTGSNH approving SHB’s charter capital increase from VND 12,036 billion to more than VND 15,000 billion in the form of issuing shares to existing shareholders. The charter capital increase plan has been approved by SHB’s General Assembly of Shareholders in Resolution No. 01/NQ-DHDCD dated April 23, 2019. In order to raise capital, SHB shall issue an additional amount of 300.8 million shares to existing shareholders.

In the mean time, SHB has completed the application for SBV’s approval on issuing shares for the purpose of dividend payout. It is expected that by the end of 2019, SHB shall obtain approval from SBV. Immediately after obtaining the approval of the State Bank, SHB will complete relevant procedures required by the State Securities Commission to implement the plan. The Bank will issue over 252.6 million shares (equivalent to more than VND 2,526 billion at par value) to pay dividends for 2017 and 2018 corresponding to the rate of 21% (ie. each shareholder who owns 100 shares will receive an additional 21 new shares).

Thus, by paying dividends in the form of shares and issuing shares to the public, SHB will increase its charter capital by VND 5,534 billion to more than VND 17,570 billion (equivalent to an increase of 46%). 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 lending scale.