Wednesday,  Sep 26, 2018,08:05 (GMT+7) 0 0
Warburg Pincus to invest US$370 million in Techcombank
The Saigon Times Daily
Tuesday,  Mar 13, 2018,23:27 (GMT+7)

Warburg Pincus to invest US$370 million in Techcombank

The Saigon Times Daily

A customer is seen in a transaction with Techcombank. Two separate legal entities under U.S. private equity firm Warburg Pincus will inject more than US$370 million into Techcombank - PHOTO: TL

HCMC – Two separate legal entities under U.S. private equity firm Warburg Pincus will inject more than US$370 million into Vietnam Technological and Commercial Joint Stock Bank (Techcombank), marking the largest private equity investment in Vietnam to date.

Techcombank, one of Vietnam’s largest joint stock commercial banks, said in a statement on March 12 that the investment is part of Techcombank’s equity-raising effort to fund its expansion and solidify its position on the local market.

The transaction, to be managed by the two legal entities under Warburg Pincus, will represent the largest private equity investment in Vietnam and will bring Warburg Pincus’ total commitment to the Southeast Asian nation to over US$1 billion.

Techcombank announced at its annual general meeting on March 3 that the bank had decided to sell more than 172 million treasury shares, making up 19.14% of its chartered capital. Earlier, the bank bought back the same stakes from HSBC after 12 years of partnership.

Techcombank and HSBC began their strategic partnership in 2005. HSBC was no longer involved with Techcombank’s business operations by 2012. In the initial phase, they worked closely on technology and product development through a technical service agreement which formally expired in 2014.

Jeffrey Perlman, managing director and head of Southeast Asia at Warburg Pincus, said Vietnam is one of the fastest growing banking markets in Southeast Asia. Meanwhile, Techcombank has strong local and international banking experience.

Perlman said Warburg Pincus expects Techcombank to further consolidate its position in Vietnam and become one of the leading banks in the region. “The investment into Techcombank marks our continued commitment and strong belief in the long-term prospects of Vietnam.”

Nguyen Le Quoc Anh, chief executive officer of Techcombank, said the bank looks forward to working with Warburg Pincus to pursue new high growth opportunities, and further its aim to become the leading bank in the region in the next decade.

Share with your friends:         
 
Business
World
Sport
Travel
 
Publication Permit No. 321/GP-BTTT issued on October 26, 2007
Deputy Editor-in-Chief: Pham Huu Chuong
Managing Editor: Nguyen Van Thang.
Assistant Managing Editor: Pham Dinh Dung.
Head Office: 35 Nam Ky Khoi Nghia St., Dist.1, Ho Chi Minh City, Vietnam. Tel: (84.28) 3829 5936; Fax: (84.28) 3829 4294.
All rights reserved.