6th Jul 2007 11:19
HSBC Holdings PLC06 July 2007 HSBC TO INCREASE STAKE IN VIETNAM'S TECHCOMBANK; BUILDS ON ASIAN EMERGING MARKETS PLATFORM HSBC has received approval from the State Bank of Vietnam to increase its stakein Vietnam Technological and Commercial Joint-Stock Bank (Techcombank) from 10per cent to 15 per cent for a total consideration of US$33.7 million (VND539.4billion). HSBC is the first foreign bank to receive approval for a 15 per centstrategic investment in a domestic Vietnamese bank. The increased stake inTechcombank reinforces HSBC's leading position in emerging markets. In April, the Government of Vietnam passed a decree to allow foreign banks toown 15 per cent of a Vietnamese commercial bank which may be increased to 20 percent subject to approval from the Vietnamese Government. In accordance withthese new regulations, HSBC intends to immediately subscribe for new shares inTechcombank to increase its stake to 15 per cent. An application to thegovernment will subsequently be submitted for a second tranche of shares to takeits stake in the bank to 20 per cent. Vietnam has a population of over 84 million. Its GDP has averaged over seven percent in recent years, GDP per capita has doubled over the last 10 years andforeign direct investment grew by 55 per cent last year to a record high. Vincent Cheng, Chairman of The Hongkong and Shanghai Banking CorporationLimited, said: "Raising our investment in Techcombank will allow us to expandour presence in one of Asia's fastest growing economies, and reflects our focuson emerging markets. In addition to our increased shareholding, we plan toextend the technical service assistance we provide to Techcombank, and bothparties intend to explore joint business opportunities. HSBC has committedUS$13.5 million to support the agreements on technical service assistance over afive-year period." Founded in 1993, Techcombank is one of the country's largest joint stock banks,with assets totalling VND25,000 billion at 31 May 2007. Techcombank's 2,000staff serve almost 200,000 personal and over 13,000 commercial customers througha network of over 100 branches and transaction offices in 20 provinces andcities across Vietnam. Notes to editors: 1. HSBC in VietnamHSBC first opened an office in Saigon (now Ho Chi Minh City) in 1870. The branchoperated for over 100 years, until its closure in 1975. HSBC also opened anagency of the bank at Haiphong in 1884 which was upgraded to a sub-office at thebeginning of the 1920s. This arrangement continued until the closure of theagency in 1954. The bank was able to revive its strong links with Vietnam whenrepresentative offices were opened in Ho Chi Minh City and Hanoi in 1992. The HoChi Minh City representative office became a full service branch in 1995 and abranch was opened in Hanoi in March 2005. 2. The HSBC GroupThe Hongkong and Shanghai Banking Corporation Limited is the founding and aprincipal member of the HSBC Group which, with around 10,000 offices in 82countries and territories and assets of US$1,861 billion as at 31 December 2006,is one of the world's largest banking and financial services organisations. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
HSBC Holdings