Military Bank to hike chartered capital to 3.4tr dong

Friday, May 23, 2008
Military Commercial Joint Stock Bank (MB) recently announced the plan to scale up its chartered capital to 3.4 trillion dong within this year.

The bank's shareholders' meeting held on May 19 passed this year's growth targets with 735 billion dong from pre tax profit, up 21% on 2007, its total asset would increase by 52%, total deposits and total outstanding loan 34% each, the overdue debt rate at 2%, the ensured debt rate accounting for 78% and the medium and long-term debt rate accounting for 38% of total outstanding loans.

The bank's plan of increasing chartered capital will be broken into four phases. Accordingly, in the first phase MB would increase 363.76 billion dong through paying dividend to shareholders at the ratio of 30% in shares on June 2.

In the second phase, MB would raise 316.24 billion dong in the fourth quarter of 2008 via paying bonus shares to shareholders and the bank's employees. The third and the fourth phases will be carried out in December. Of which, the third phase will hike 220 billion dong by transferring 2006 bonds to shares and the fourth phase will increase 500 billion dong by selling shares to domestic and foreign strategic shareholders and potential shareholders with the negotiation price.

MB also plans to pay 7% dividend in cash in advance for the first phase of 2008 on May 26. the time to close the list of shareholders book to is on May 23