Japanese bank buys into BIDV subsidiary
BLC, the finance leasing arm of the Bank for Investment and Development of Vietnam (BIDV), has been renamed as BIDV-SuMi TRUST Leasing Co. after Japan’s Sumitomo Mitsui Trust Bank bought a 49% stake.
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The State Bank of Vietnam (SBV) has given approval in principle to the conversion of BLC into a joint venture. BIDV Financial Leasing Co. (BLC) was wholly owned by BIDV with chartered capital of VND447.8 billion, and headquartered in HCM City.
The capital of the joint venture is doubled to VND895.6 billion and the headquarters is in Hanoi. BIDV holds a 50% stake, Sumitomo Mitsui 49% and Sun Group 1%.
BIDV said it had been in a strategic partnership with Sumitomo Mitsui since 2013.
The two sides reached an agreement on cooperation in finance leasing in Hanoi on April 29, 2016, in which BIDV would sell 49% of its finance leasing arm to the Japanese partner.
BIDV-SuMi TRUST would be the first finance leasing joint venture between a local bank and a foreign financial institution in the country. The company will be put into operation when the central bank gives official approval.
When BIDV-SuMi TRUST is in place, BIDV would be able to roll out financial packages that meet diverse needs of customers for credit, insurance, finance leasing and securities.
Sumitomo Mitsui is Japan’s largest trust bank with total assets of nearly 59.5 trillion yen (US$585.4 billion) and equity of some 2.02 trillion yen (US$19.9 billion) by September 30, 2016.
