According to information from Vietnam Prosperity Joint Stock Commercial Bank (VPBank), the bank has just signed an agreement with Sumitomo Mitsui Financial Group (SMFG, SMBC Group) to sell 49% of its charter capital in the Company. Vietnam Prosperity Finance Company Limited (FE Credit) with a valuation of USD 2.8 billion.
SMBC Consumer Finance Company (SMBCCF), a subsidiary wholly owned by SMFG, is a legal entity that buys this stake.
The representative of VPBank said that through this transaction, FE Credit expects to receive support in capital resources, management capacity, and experience in the consumer finance sector in Asia from SMBC Group, especially from SMBCCF – the leading consumer finance company in the Japanese market. At the same time, this transaction will add a large amount of capital to VPBank, contributing to enhancing the bank’s financial potential to capture new investment opportunities in the market.
For SMBC Group, the investment in FE Credit is part of the group’s mid-term strategy to expand its business base in Asia.
FE Credit is currently the leading consumer finance company in Vietnam with approximately 50% market share, 20,000 service referrals nationwide, and over 13,000 employees. With small loans, FE Credit is especially focused on serving the segment of customers with middle and low income – a segment not yet served by banks. To date, FE Credit has served nearly 11 million Vietnamese people through its unsecured loan products and services.
Meanwhile, SMBC Group is one of the three largest financial and banking groups in Japan, with total assets of over $ 2,100 billion as of December 31, 2020. The Group operates globally in retail banking, corporate banking, and investment banking, with a presence in more than 40 countries. SMBCCF is the leading consumer finance company in the Japanese market with more than 900 branches nationwide. In the Asia region, SMBCCF has established subsidiaries in Taiwan, Hong Kong, Thailand, and China.
Source: bizlive.vn – Translated by fintel.vn