On June 01, 2023, the State Bank of Vietnam (SBV) issued Document No. 4222/NHNN-TTGSNH allowing Lien Viet Post Joint Stock Commercial Bank (LPBank) to increase its charter capital.
Specifically, the SBV has approved of LPBank's request to increase its charter capital by the maximum amount of VND 11,385,300,200,000 (Eleven thousand three hundred eighty-five billion, three hundred million, two hundred thousand Vietnamese Dongs) through the following means:
(i) issuing additional shares to pay dividends in 2022 with a maximum amount of VND 3,285,300,200,000 (Three thousand two hundred eighty-five billion, three hundred million, two hundred thousand Vietnamese Dongs);
(ii) issuing additional shares for the existing shareholders with a maximum amount of VND 5,000,000,000,000 (Five thousand billion Vietnamese Dongs);
(iii) issuing individual shares for foreign investors with a maximum amount of VND 3,000,000,000,000 (Three thousand billion Vietnamese Dongs);
(iv) and issuing additional shares in line with the optional program for LPBank’s employees – ESOP with a maximum amount of VND 100,000,000,000 (One hundred billion Vietnamese Dongs).
This charter increase is decided in alignment with the recapitalization plan adopted by the 2023 General Shareholders’ Meeting of LPBank in its Resolution dated April 23, 2023, and approved for implementation by the Board of Directors of LPBank in Resolution No. 733/2023/NQ-HDQT dated May 05, 2023.
In the same Document, the SBV has requested LPBank to increase its charter capital in compliance with the applicable laws, including the regulations on the share ownership limits of shareholders, shareholders and their related persons, in line with the 2010 Law on Credit Institutions (as amended and supplemented), as well as other guiding documents of the SBV upon the completion of the charter capital increase.
The charter capital increase can only be conducted after LPBank has ensured full compliance with the applicable provisions of laws.
Also in the same Document, LPBank is requested to notify all shareholders buying its shares to fully comply with the regulations on shareholders' obligations as prescribed for in Article 54 and Article 55 of the 2010 Law on Credit Institutions (as amended and supplemented), and Circular No. 50/2018/TT-NHNN dated December 31, 2018 of the SBV stipulating the dossiers, sequences and procedures for requesting approval of a number of revised substances by commercial banks, foreign bank branches (as amended and supplemented), as well as other applicable legal provisions.
Within a maximum of 10 working days from the completion date of the issuance of the new shares in accordance with the laws, LPBank shall implement the procedures for amending and supplementing its License as prescribed for in Paragraph 4 of Article 11, and Paragraph 2 of Article 12 of Circular No. 50/2018/TT-NHNN.
LK