The State Bank of Vietnam (SBV) has issued Document No. 6662/NHNN-TTGSNH accepting the request of Saigon - Hanoi Commercial Joint Stock Bank (SHB) to increase its charter capital.
Accordingly, the SBV has approved of the SHB's request to increase its charter capital by the maximum amount of VND 7,413,377,700,000 (Seven thousand four hundred thirteen billion, three hundred seventy-seven million, seven hundred thousand Vietnamese Dongs) through the means of issuing additional shares to pay dividends from the remaining after-tax profits in 2020, after having set aside the provisioning funds as required by the applicable regulations, and through issuing additional shares to pay dividends for the existing shareholders, in line with Resolution No. 01/NQ-DHDCD dated April 22, 2021 which was adopted by the General Shareholders’ Meeting of the SHB, and was endorsed by the SHB's Board of Directors in Resolution No. 21/NQ-HDQT dated May 20, 2021.
The Document clearly specifies that the SHB must conduct the charter capital increase in conformity with the applicable laws. The SHB can proceed with its capital increase allowed in this Document provided that all relevant legal provisions of laws are fully complied with.
The SHB is also requested to notify all organizations and individuals buying its shares to fully comply with the regulations on shareholders' obligations as prescribed for in Articles 54 and 55 of the 2010 Law on Credit Institutions (as amended and supplemented in 2017), and Circular No. 50/2018/TT-NHNN dated December 31, 2018 stipulating the dossiers, sequences and procedures for requesting approval of a number of revised substances by commercial banks, foreign bank branches (Circular No. 50), 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 is requested to implement the procedures for revising its License as prescribed for in Paragraph 4 of Article 11 of Circular No. 50/2018/TT-NHNN dated December 31, 2018 stipulating the dossiers, sequences and procedures for requesting approval of a number of revised substances by commercial banks, foreign bank branches.
This Document is valid within 12 months from the date of its signing.
LK