Vietnam Prosperity Joint Stock Commercial Bank (VPBank) has entered into an agreement with Japan’s Sumitomo Mitsui Banking Corporation (SMBC) to issue a 15% equity stake through a private placement, welcoming SMBC as a foreign strategic investor.
The investment will help the VPBank raise USD1.5 billion of tier 1 capital and increase its owner equity to approximately VND140 trillion (USD5.9 billion) from VND103.5 trillion (USD4.4 billion).
Managing partner Truong Nhat Quang and partner Nguyen Van Hai in Ho Chi Minh City led the team from Vietnamese law firm YKVN advising VPBank. Of counsel Nguyen Huong Giang in Hanoi and Krissen Pillay in Ho Chi Minh City supported the team.
Freshfields Vietnam acted for SMBC, with counsel Chris Milliken in Ho Chi Minh City and senior associate An Hoang Ha in Hanoi leading the team, with the support of Hanoi-based associates Hoang Hoa and Nguyen Dang Hai, as well as guidance from Vietnam managing partner Tony Foster.
Through this investment, SMBC will contribute to VPBank’s growth by leveraging its know-how and business expertise accumulated in other Asian markets. The new investment also proves a strong and trusted collaboration since the two parties entered into a business partnership agreement in May 2022.