World Bank lender to buy stake in TP Bank

By Thanh Thanh Lan, An Hong   April 23, 2016 | 10:34 am GMT+7

The International Finance Corporation (IFC), the World Bank's private sector lending arm, plans to buy a five percent stake in Vietnam’s unlisted TP Bank, the Vietnamese lender said.

The IFC will acquire the Hanoi-based bank’s preferred stock at VND13,800 ($0.6) per share, making the deal worth about $18 million, said CEO Nguyen Hung.

world-bank-lender-to-buy-stake-in-tp-bank

IFC, a member of World Bank Group, plans to aquire 5 percent stake in TPBank

The selling price is higher than the bidding price of VND8,900 at which Mobifone, the country’s second-largest mobile phone firm, has planned to divest 14.28 million shares in TPBank.

IFC last year provided a trade finance facility of up to $10 million to TPBank to help the bank with risk coverage in granting trade financing to local small and medium-enterprises.

The deal will fall through following the approval by the State Bank of Vietnam and the Securities Commission, said TPBank’s CEO.

TPBank, previously trading as Tien Phong Commercial Bank, earned VND625 billion in pre-tax profit last year after a loss-making period. It planned to increase profit by 11 percent this year to VND695 billion dong and keep bad debts under 2 percent.

 
 
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