Vietnam Bank News

Vietnam Bank Directory

Trade BTCUSD, Bitcoin and Cryptocurrencies

BUY & SELL BTCUSD | View BTCUSD News & Updates

Buy Sell BTCUSD, Bitcoin and Cryptocurrencies

Banking News & Financial Services News
Get the latest banking news headlines from Find in-depth Vietnam coverage from banking, investing, financial, stock market, and more abou Vietnam banking system, bank for industry and trade, Vietnam banking sector.

HSBC Insurance increases stake in Bao Viet Holdings   2009-10-25 - VNS

HSBC Insurance (Asia Pacific) Holdings Ltd has agreed to pay nearly VND1.9 trillion (US$105.3 million) for an 8-per-cent stake in Bao Viet Holdings, increasing its share of ownership in Viet Nam’s leading insurance and financial services group to 18 per cent.

Bao Viet shareholders on Thursday agreed to HSBC Insurance’s acquisition of the additional stake, approving the issue of 53.69 million new shares to the strategic partner.

HSBC acquired a 10-per-cent interest in Bao Viet in September 2007 and, under the terms of the original agreement, had an option to buy a further 8 per cent upon approval form the Ministry of Finance. The ministry has since given its consent.

The new shares would be issued through a private placement subject to other conditions as well as approval from the State Securities Commission, and HSBC would continue to hold certain pre-emptive rights to acquire shares currently held by the Ministry of Finance up to a maximum stake of 25 per cent, subject to prevailing foreign ownership limits.

"After two years of successful co-operation, we are pleased HSBC is able to increase its shareholding to 18 per cent," said Bao Viet Holdings chairman Le Quang Binh. "The increased shareholding by HSBC adds to the financial position of Bao Viet and its capacity to finance its growth and development."

"Our additional investment in Bao Viet reflects the successful partnership we have enjoyed over the last two years and the confidence we have in the long-term growth prospects of Bao Viet and of Viet Nam," said HSBC group chief executive Michael Geoghegan.

"This is also entirely consistent with our stated strategic focus on the world’s faster growing markets and our intention to meet the insurance and wealth protection needs of our customers in these rapidly developing markets," Geoghegan said.

Sovereign fund

Bao Viet Holdings also recognised the State’s sovereign wealth fund, the State Capital Investment Corporation (SCIC), as a strategic partner, replacing former partner the Viet Nam Shipbuilding Industry (Vinashin) Group.

The deal follows SCIC’s acquisition of 20.4 million shares from Vinashin, making it the second leading shareholder in the insurer, after HSBC Insurance.

SCIC director Tran Van Ta pointed to 700 enterprises in which the corporation held stakes as potential clients for Bao Viet via this new strategic partnership.

In addition, the SCIC would also support Bao Viet in financing investment projects and in corporate administration, Ta said.

Other Banking News

Banks still trying to lure more capital   2009-10-21

Citigroup opens Vietnam retail bank as wealth expands   2009-10-13

BIDV sells bonds worth $75.67 mln   2009-08-28

Vietnam to keep key rates unchanged in September   2009-08-26

Banks tightening credit, but loaning to stock investors exception   2009-08-24

Banks assess the cost of advancing card technology   2009-08-21

HSBC named best consumer internet bank in Vietnam   2009-08-18

Banks moving to list shares on HCM City exchange   2009-08-17

Banks raising long-term US$ deposit interest rates   2009-08-17

Banks almost to finish line   2009-08-11

ACB, Standard Chartered ink mutual support pact   2009-08-09

Deposit interest rates rising again   2009-07-30

Lending against securities up   2009-07-21

Bonds post biggest weekly gain in six months   2009-07-18