Vietinbank (HOSE: CTG) has fast-tracked negotiations to sell a 15-per-cent stake to the Bank of Nova Scotia in a deal expected to finalise in the third quarter of this year, Vietinbank Chairman Pham Huy Hung told reporters in Ha Noi on Jan. 25.


The International Finance Corporation (IFC), the financial arm of the World Bank, also announced yesterday that it would invest US$182 million in a 10-per-cent stake in Vietinbank, pursuant to an agreement signed last October.
"I believe that the IFC's financial and advisory support will help us carry out our expansion and modernisation strategy and improve access to finance for small- and medium-sized enterprises," Hung said.
As a strategic partner, the IFC was committed to providing Vietinbank with advisory services in the areas of corporate governance, risk management, energy efficiency and information technology.
The IFC also agreed on Jan. 25 to make a subordinated loan of $125 million to Vietinbank. The loan, at an annual rate of six-month Libor plus 1.5 per cent, would mature in 2021.
"The borrowing rate is very favourable," said Hung. "The credit meets all criteria to be considered second-tier equity."
The State currently holds 80 per cent of equity in Vietinbank, while the IFC holds 10 per cent and domestic investors, also 10 per cent.
Vietinbank – the third largest bank in Viet Nam by credit market share and fourth largest by stock market capitalisation – expects to double its charter capital over the next 10 years, from VND15.17 trillion ($757.46 million) to VND30 trillion ($1.5 billion).
Vietinbank shares, coded CTG on the HCM City Stock Exchange, closed down 3.4 per cent yesterday to VND22,600 per share.