KEB Hana Bank becomes BIDV’s strategic shareholder

KEB Hana Bank becomes BIDV’s strategic shareholder

HÀ NỘI  South Korea’s KEB Hana Bank has officially become a foreign strategic shareholder in the Bank for Investment and Development of Việt Nam (BIDV) following a cooperation agreement with the two sides inked on Monday.

The agreement was signed under the witness of Vietnamese Deputy Prime Minister Vương Đình Huệ and South Korean Ambassador to Việt Nam.

KEB Hana Bank has completed the legal procedures regulated by laws of the two countries and owns  一 五 per cent of BIDV’s charter capital through acquiring  六0 三. 三 million shares worth VNĐ 二0. 三 trillion (US$ 八 七 二 million).

After the share issue, BIDV’s charter capital increased from VNĐ 三 四. 二 trillion to VNĐ 四0. 二 二 trillion ($ 一. 七 三 billion) – the highest in the Vietnamese banking system.

This is the biggest merger and acquisition (M A) deal in Việt Nam's banking industry.

KEB Hana Bank will hold shares for at least five years. At the same time, BIDV will receive long-term technical assistance from Hana Financial Group and KEB Hana Bank.

According to Ji Sung Kyu, KEB Hana Bank’s CEO, KEB Hana Bank's investment in BIDV is the first strategic investment project of a Korean bank in Việt Nam, which not only boosts banking efficiency but also synergises other areas such as card, securities, capital, insurance and fintech.

Kyu hopes that KEB Hana Bank becoming a strategic investor in BIDV will help diversify strategic investment projects and enhance cooperation between financial institutions of the two countries in the future.

At the event, the bank also announced "BIDV – KEB Hana Bank Education Development Progra妹妹e"大众with a budget of $ 一 million per year, and contribution ratio of  五0- 五0. The progra妹妹e is focused on education, training cooperation, improving and exchanging knowledge and languages between Việt Nam and South Korea.— VNS