01:38 (GMT +7) - Tuesday 20/04/2021

Banking & Finance

KEB Hana Bank becomes strategic shareholder of BIDV

Released at: 16:17, 12/11/2019

KEB Hana Bank becomes strategic shareholder of BIDV

Photo: BIDV

South Korean bank buys 15% stake and two agree to strategic partnership.

by Linh San

The Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) officially signed a strategic cooperation agreement with KEB Hana Bank (South Korea) on November 11 and announced the latter becoming a foreign strategic shareholder, with 15 per cent of charter capital.

Approval is being sought from the two governments and authorities in Vietnam and South Korea.

This is the largest M&A deal with a strategic investor in Vietnam’s banking industry and is a double transaction, with KEB Hana Bank buying a 15 per cent stake in BIDV with a holding period of at least five years.

BIDV will also receive long-term technical assistance from the Hana Financial Group and KEB Hana Bank, including but not limited to six areas: strategic corporate governance, technology and digital banking, retail banking development, diversified asset portfolios, risk management, and human resources training and development.

“The cooperation between the two leading financial institutions in the two countries not only brings benefits to the two banks but also the business community of Vietnam and South Korea,” said Ms. Nguyen Thi Hong, Deputy Governor of the State Bank of Vietnam. “KEB Hana Bank’s large investment in Vietnam is testament to the optimism and confidence in the stability and development potential of Vietnam’s economy and the finance and banking industry in general and BIDV in particular.”

According to Mr. Ji Sung Kyu, CEO of KEB Hana Bank, its investment in BIDV is the first strategic investment project of a South Korean bank in Vietnam, which not only boosts banking efficiency but also synergizes other areas such as card, securities, capital, insurance, and fintech. He hopes that KEB Hana Bank becoming a strategic investor in BIDV will help diversify strategic investment projects and enhance cooperation between financial institutions in the two countries in the future.

The strategic partnership is of great significance to BIDV, marking an important milestone in its development and international integration, according to Chairman Mr. Phan Duc Tu. With long-term strategic support from KEB Hana Bank and the Hana Financial Group - a financial institution with outstanding governance capacity and successful experience in South Korea and many countries around the globe - BIDV will have the opportunity to fundamentally change its governance model, improve management capacity and risk management, develop modern products and services of high technological content, enhance competitiveness, better meet the needs of customers for products and services, and contribute to national development.

The strategic partnership not only marks a new turning point in the history of BIDV - the oldest commercial bank in Vietnam - but also an important advance in BIDV and KEB Hana Bank’s cooperation to further promote economic and diplomatic relations between the two countries.

Established in 1957, BIDV is the largest lender in Vietnam by total assets. The bank covers a wide range of operations, including banking, insurance, securities, and financial investment, with a network of more than 1,000 branches and transaction offices and a commercial presence in six countries and territories.

User comment (0)

Send comment