Vietnam - Military Bank to increase charter capital by 30% to 13tr dong in Q3 2012

Military Commercial Joint Stock Bank (MBB)’s general shareholder meeting (AGM) on April 26 has approved to increase its charter capital by 30% to 13 trillion dong in the third quarter of this year from current 10 trillion dong.

The HOSE listed lender will raise the money through issuing new shares in two tranches, both in the third quarter of this year.

In the first tranche, the lender will offer 62.5 million new shares to its existing shareholders at 1-for-20 ratio and to its staff at 10,000 dong/share to raise 625 billion dong charter capital.

In the second tranche, the lender will issue 237.5 million new shares to strategic partners to increase its charter capital by 2.375 trillion dong.

The Hanoi-based lender expects to use the proceeds from issuing new shares to enhance its capacity (509 billion dong), to contribute to its subsidiaries (320 billion dong), and to expand its business and capital (2.17 trillion dong).

Also in Q3/2012, Military bank sets a plan to issue 4 trillion dong worth of convertible bonds (or 40 million bonds at par value of 100,000 dong) of which 1 trillion dong bonds will be offered to  its existing shareholders and 3 trillion dong bonds to domestic strategic partners.

With the charter capital raising plan, the firm aims to make a pre-tax profit of 3.58 trillion dong in 2012, up 26% from 2011 while its charter capital is expected to increase by 78% in the year ( versus its charter capital of 7.3 trillion dong in 2011).

The lender also targets deposits of 108.2 trillion dong and total assets of 171 trillion dong after the capital increase in 2012, up 21% and 27% from 2011, respectively.

At the AGM, the bank answered the shareholders’ question related to dividend payout in 2012 that it will give priority to cash dividend payment for more flexibility.

At 09:43 AM April 26, MBB was being traded up 0.64% at VND15,700/share; or trailing P/E at 5.64x. Foreign investors hold 6.08% stake in the HOSE listed lender.

MBB | StoxPlus

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