Hanoi-based Military Bank (MB Bank) on January 22 informed the approval of the Vietnam Securities Depository (VSD) to adjust the lender’s foreign ownership limit from 20% to 20.9%, said the bank in a statement.

Illustrative photo.

The move would allow MB Bank to transfer 21.43 million in treasury shares to foreign investors under the former’s request and permission from the State Securities Commission (SSC), the country’s stock market watchdog. 

According to the bank, the easing of foreign ownership limit will be effective from January 22, 2020.

Last December, MB Bank announced the plan to sell a maximum of 23 million in treasury shares via order-matching or put-though.

The amount of shares subject to the sale was equivalent to 49% of total treasury stocks owned by the bank.

MB Bank said it aims to use proceeds from the sale to build offices and branches, invest in technologies and necessary equipment for stable operation and development.

The government currently owns 44% of Military Commercial Bank through several military-linked companies, according to FactSet, a data provider. Domestic and foreign financial institutions own 11%, while the rest is held by individual investors and entities such as mutual funds.

MB Bank has more than 100 branches, including two in Laos and Cambodia, and a representative office in Russia, according to the bank’s website.