VietinBank consulted shareholders to increase charter capital from stock dividends

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The Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank, code CTG) has just announced the consultation of shareholders in writing on the plan to increase charter capital through the issue of shares to pay dividends from profit after tax and Appropriation of funds for the years 2017, 2018, and 2019.

The last registration date is November 5, 2020. The date of sending opinion forms to shareholders is expected 11/13/2019, receiving comments until the end of November 23, 2020.

Previously, the Government issued Decree 121/2020 / ND-CP amending and supplementing Clause 2, Article 12, Decree 91/2015 / ND-CP dated October 13, 2015 on state capital investment in Enterprise and management and use of capital and assets in enterprises, as amended and supplemented in Clause 5, Article 1, Decree 32/2018 / ND-CP dated March 8, 2018.

Accordingly, Decree 121/2020 / ND-CP expands the scope of supplementary investment of State capital invested in joint stock companies and limited liability companies with two or more members.

Additional cases are enterprises operating in the banking sector, applicable to joint-stock commercial banks with over 50% of charter capital held by the State.

With the amendment of the decree, the Government has created a legal basis to help banks such as VietinBank, Vietcombank, and BIDV to increase their charter capital from the share dividends.

For many years, due to the inability to raise capital, VietinBank had to implement many alternative solutions, including restructuring equity capital, issuing secondary bonds to supplement tier 2 capital,… to reduce pressure. However, these methods have so far reached the prescribed limit.

Source: bizlive.vn – Translated by fintel.vn