Techcombank to raise charter capital

Techcombank will offer about additional 149 million shares to existing shareholders in June at a ratio of 27.6 per cent, and an additional 4 million shares will be offered to staff, at a price of VND10,000 per share.

“Capital raised through this offer will be used to upgrade infrastructure and technical systems,” said Techcombank chairman Ho Hung Anh, with additional funds allocated to network expansion and funding lending and investment activities.

The bank was also planning to issue VND3 trillion (US$157.9 million) in convertible bonds by the third quarter of this year. The bonds, with a one-per-cent coupon, would be convertible into shares at then end of five years. For the second five years until maturity, they would pay 12 per cent per year.

“Money raised through the bond issue will be allocating to … satisfy credit demand which is growing quickly in the context of the economic recovery,” said Anh.

Additional capital would be invested in the banks capital reserves, including in T-bills and Government bonds, he added.

Techcombank expects to increase its charter capital this year to VND6.93 trillion (US$364.7 million) and has targeted a profit of VND3.46 trillion ($182.1 million).

The bank projects assets on December 31 of nearly VND144.4 trillion ($7.6 billion) and customer deposits totalling VND128.6 trillion ($6.7 billion). It has targeted outstanding loans of VND67.6 trillion ($3.6 billion) by the end of the year, with a bad debt ratio of 1.98 per cent. — VNS