Bidv increases investment in Lao- Viet Bank

Bank for Investment and Development of Vietnam (Bidv) and Lao Bank for Foreign Trade (BCEL) recently signed an agreement to adjust the chartered capital structure of Lao- Viet Joint Venture Bank (Lao-Viet Bank).

Accordingly, Bidv will contribute 65 percent stake in the holding in Lao-Viet Bank and BCEL makes up 35 percent stake.

The parties agreed that the roadmap to restructure the capital contribution in the Lao-Viet Bank will be carried out in two phases.

In the first stage, Lao-Viet Bank will increase its chartered capital to $37.5 million prior to October 30, 2011. In particular, Bidv will make up $24.375 million and BCEL pours $13.125 million. This chartered capital increase is to raise the financial capacity and ensure the minimum chartered capital in accordance with the regulations of Vietnamese and Lao governments.

The second phase is expected to be carried out in 2012 whereby partners will contribute capital to increase Lao-Viet Bank’s chartered capital to at least $65 million to develop business activities, increase the operation scale and expand operations in,

On the same day, Lao-Viet Bank also signed a contract worth over $4.3 million with FPT Joint Stock Co to convert its CorBanking system.

As of the end of June 2011, Lao-Viet Bank reached total assets of over $330 million, 30 time increase from the time of establishment and reached annual average growth of 25 percent. The lender’s other business targets on deposits and lending activities gained average growth of over 35 percent per year. – Vietbiz24

Tags: BIDV, Lao- Viet Bank, Vietnam banking industry, Vietnam finance, Vietnam financial