Thus, the handshake between VPBank and SMBC - one of the largest foreign share sales deals in the banking and finance sector in 2023 - has been officially completed.

Speaking at the ceremony, Mr. Ngo Chi Dung - Chairman of VPBank's Board of Directors said: "Since March 2023, VPBank has signed an agreement to issue 15% of shares privately to SMBC Bank - a member of SMBC Group. But the story of the relationship between VPBank and SMBC Bank began more than 2 years ago, after VPBank transferred 49% of shares from FE Credit to SMFG Consumer Finance Company under SMBC Group. At that time, both sides agreed that the relationship could become even more connected and closer."

VPBank reached an agreement to issue a private placement to its strategic partner SMBC at the end of March. Accordingly, the bank offered more than 1.19 billion shares to SMBC - a bank under the Sumitomo Mitsui Financial Group, Inc. (SMFG), Japan. The total value of the issuance reached more than VND35.9 trillion (equivalent to nearly USD1.5 billion). All shares issued privately to the strategic partner will be subject to transfer restrictions within the next 5 years.

SMBC has already deposited 10% of the offering value ahead of the bank’s Annual General Meeting of Shareholders in April 2023. Approximately 90% of the remaining value of the transaction will be recorded in the bank’s equity immediately after the transaction is completed.

The offering agreement to SMBC is part of VPBank's capital increase plan implemented from 2022 to strengthen long-term financial capacity.

VPBank's total equity will be raised from VND103.5 trillion to approximately VND140 trillion. The bank's capital adequacy ratio (CAR), according to calculations by international credit rating agency Moody's, will increase to nearly 19%.