GIC to acquire 7.7% stake in Vietcombank as IE Singapore helps SMEs seek opportunities in country

SINGAPORE (Aug 29): GIC, Singapore’s sovereign wealth fund, on Monday made its first significant direct investment in a commercial bank in Vietnam.

GIC signed a memorandum of understanding (MOU) with the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) - Vietnam’s largest bank by market capitalisation - to acquire 305.8 million new shares, or a 7.73% stake of the enlarged group.

The equity investment by GIC, which is part of Vietcombank’s private placement of 359.8 million new shares, is expected to increase Vietcombank’s charter capital and help the bank prepare for the implementation of Basel II and maintain its leading position in the Vietnamese banking sector. GIC will also offer Vietcombank technical assistance and support.

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