The Government of Singapore Investment Corporation is the largest shareholder of Swiss bank UBS. Now the sovereign wealth fund plans to acquire a 7.73 percent stake in Vietnam's largest bank Vietcombank.
It is proposed that The Government of Singapore Investment Corporation (GIC) will purchase 305.8 million new shares in Commercial Bank for Foreign Trade of Vietnam (Vietcombank). The equity investment by GIC will increase Vietcombank’s charter capital and help the bank prepare for the implementation of BASEL II as well as maintain its leading position in the Vietnamese banking sector. GIC’s investment is part of Vietcombank’s private placement of 359.7 million new shares.
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The investment will be GIC’s first significant direct investment in a commercial bank in Vietnam. GIC will also offer Vietcombank technical assistance and support. With a population in excess of 90 million and a maturing economy the investment could be a practical hedge against its Swiss holdings.
«This investment reflects our confidence in Vietnam’s long-term growth potential. We believe with Vietcombank’s strong management team and market positioning, the bank will be able to capitalise on the strong growth trajectory of the Vietnam banking industry,» said Amit Kunal, Head of Direct Investments Group for Southeast Asia, Private Equity & Infrastructure, GIC.
Another Swiss bank, Credit Suisse, acted as Placement Agent and Financial Advisor to Vietcombank on the transaction.
