On June 15, 2023, the State Bank of Vietnam (SBV) issued Document No. 4629/NHNN-TTGSNH allowing Saigon Hanoi Commercial Joint Stock Bank (SHB) to increase its charter capital.
Specifically, the SBV has approved of the SHB's request to increase its charter capital by the maximum amount of VND 5,971,596,610,000 (Five thousand nine hundred seventy-one billion, five hundred ninety-six million, six hundred ten thousand Vietnamese Dongs) through the following means:
(i) issuing additional shares to pay dividends with a maximum amount of VND 5,520,396,610,000 (Five thousand five hundred twenty billion, three hundred ninety-six million, six hundred ten thousand Vietnamese Dongs); and
(ii) issuing additional shares in an optional program for the SHB’s employees with a maximum amount of VND 451,200,000,000 (Four hundred fifty-one billion, two hundred million Vietnamese Dongs).
This charter capital increase has been decided in alignment with the recapitalization plan adopted by the General Shareholders’ Meeting of the SHB in its Resolution No. 01/NQ-DHDCD dated April 11, 2023, and approved for implementation by the Board of Directors of the SHB in Resolution No. 12.1/NQ-HDQT dated May 12, 2023.
In the same Document, the SBV has requested the SHB to increase its charter capital in compliance with the applicable laws, including the regulations on the share ownership limits of shareholders, shareholders and their related persons, in line with the 2010 Law on Credit Institutions (as amended and supplemented), as well as other guiding documents of the SBV upon the completion of the charter capital increase.
The charter capital increase can only be conducted after the SHB has ensured full compliance with the applicable provisions of laws.
Also in the same Document, the SHB is requested to notify all shareholders buying its shares in writing to request them to fully comply with the regulations on the shareholders' obligations as prescribed for in Article 54 and Article 55 of the 2010 Law on Credit Institutions (as amended and supplemented), and Circular No. 50/2018/TT-NHNN dated December 31, 2018 of the SBV stipulating the dossiers, sequences and procedures for requesting approval of a number of revised substances by commercial banks, foreign bank branches (as amended and supplemented), as well as other applicable legal provisions.
Within a maximum of 10 working days from the completion date of the issuance of the new shares in accordance with the laws, the SHB shall implement the procedures for amending and supplementing its License as prescribed for in Paragraph 4 of Article 11, and Paragraph 2 of Article 12 of Circular No. 50/2018/TT-NHNN.
This Document is valid within 12 months from the date of its signing.
LK