Eximbank seeks to pay dividends after 7 years
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Lender Eximbank has sought approval from the State Bank of Vietnam to pay a dividend of VND1,800 ($0.07) per share for 2020.
The bank sold its bad debts to the state-owned Vietnam Asset Management Company (VAMC) in 2015 against bonds on the condition it is not allowed to pay dividends until the bonds are fully redeemed.
According to documents it has circulated among shareholders, it redeemed the last of the bonds on March 30.
The last time it paid dividends was for 2013.
Questions & Answers
Q.Why has Eximbank been unable to pay dividends for the past seven years?
Why has Eximbank been unable to pay dividends for the past seven years?
Eximbank sold its bad debts to the Vietnam Asset Management Company (VAMC) in 2015. A condition of this sale was that it could not pay dividends until these bonds were fully redeemed. This prevented dividend payments until recently.
Q.What is the specific dividend amount Eximbank is proposing to pay?
What is the specific dividend amount Eximbank is proposing to pay?
Eximbank has sought approval to pay a dividend of VND1,800 per share. This amount translates to approximately $0.07 per share, based on the current exchange rate mentioned in the article for the 2020 financial year.
Q.When did Eximbank complete the redemption of its bonds with VAMC?
When did Eximbank complete the redemption of its bonds with VAMC?
Eximbank completed the redemption of its bonds with the Vietnam Asset Management Company on March 30. This final redemption allowed the bank to seek approval to resume dividend payments to its shareholders.
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