Japan's SMBC to Buy 15 per cent Stake in Eximbank
The Tokyo-based Sumitomo Mitsui Banking Corporation (SMBC) has signed a deal with Vietnam Export Import Commercial Joint Stock Bank (Eximbank) in Tokyo to buy a 15 per cent stake in the Vietnamese bank, state media said November 28.
The Japanese bank has agreed to pay US$225 million for the deal, which was signed on the Vietnam President's official visit to Japan November 27.
With the stake purchase, SMBC will become the biggest strategic partner of Eximbank. The two sides will join hands in developing retail banking services, share experience in risk management and business administration.
Eximbank has recently decided to issue shares to raise its registered capital to VND3.73 trillion from VND2.8 trillion. Besides the 15 per cent stake sold to SMBC, Eximbank will offer another 10 per cent stake to foreign investment funds.
The unlisted Vietnamese bank reported its pretax profit rose 71 per cent on year to VND473 billion (US$29.56 million) between January and September, and target VND610 billion in 2007.
Sumitomo Mitsui Banking Corporation is now the wholly-owned subsidiary of Japan's third largest bank, Sumitomo Mitsui Financial Group Inc (SMFG). (Securities Investment, VNA)
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