KEB Hana Bank agrees to acquire 15% stake in Vietnam's top state lender
SEOUL, AJU - KEB Hana Bank, a major commercial bank in South Korea, will acquire a 15-percent stake in a top state-owned lender in Vietnam which has become a key production base for South Korean companies.
Under a deal signed on Monday, the South Korean bank agreed to buy 1.024 won ($869 million) worth of new stocks to be floated by the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV).
KEB Hana Bank described BIDV as an investment destination that can expect stable dividends and capital gains, saying the investment was in line with a campaign by Vietnam to advance its financial system by attracting foreign capital.
Using its advanced risk management techniques, KEB Hana Bank promised to improve BIDV's asset composition, which is concentrated on corporate finance, to focus on retail banking to diversify revenue sources and maximize investment profits.
South Korean companies have made a string of investments in Vietnam, especially since President Moon Jae-in visited Hanoi in March last year.