National Citizen Bank to double charter capital with private placement
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National Citizen Bank (NCB) has approved a private placement to issue 620 million new shares in 2024 to double its capital.
The issuance is scheduled for the second quarter. The issued shares will be blocked from trading for one year.
If the plan succeeds, NCB’s charter capital will rise from VND5.6 trillion to VND11.8 trillion ($213 million to 487 million).
NCB has for years been among the banks with the lowest amount of capital in Vietnam.
The minimum charter capital requirement in the country is VND3 trillion. Household appliance maker Sun Group became a shareholder in the bank last year.
NCB is in the process of restructuring. It has a bad debt ratio of more than 3%.
Questions & Answers
Q.What is National Citizen Bank's current charter capital?
What is National Citizen Bank's current charter capital?
National Citizen Bank's current charter capital stands at VND5.6 trillion, which is approximately $213 million. This figure is among the lowest capital amounts for banks in Vietnam.
Q.How much capital does NCB aim to raise with the private placement?
How much capital does NCB aim to raise with the private placement?
NCB aims to nearly double its charter capital to VND11.8 trillion, equivalent to $487 million, if the private placement plan succeeds. This increase will be achieved by issuing 620 million new shares.
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