VietinBank to sell shares to Nova Scotia

VietinBank , Vietnam’s top partly private lender by assets, aims to conclude talks to sell a 15 percent stake to Canada’s Bank of Nova Scotia in the second quarter of 2011, a state-run newspaper said on Friday.

VietinBank has been accelerating talks with the Canadian bank so that “in Q2 2011 the bank will officially become a shareholder of VietinBank”, Chairman Pham Huy Hung told the central bank-run Banking Times newspaper in an interview.

Hung also said the International Finance Corporation (IFC) would remit more than $300 million in the first quarter of 2011 to conclude the purchase of 10 percent of VietinBank, or the Vietnam Joint Stock Commercial Bank for Industry and Trade.

In October IFC signed an agreement to buy 10 percent of Hanoi-based VietinBank for $186 million and to extend a $125 million 10-year loan to help VietinBank finance its long-term investment.

Shares in VietinBank ended flat at 23,000 dong ($1.18) on Friday.

Hung said next year VietinBank would issue bonds on the international markets, including in the United States, to raise funds to meet demand for Vietnam’s economic development.

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