Aozora to Make 1st Investment in Foreign Bank

Economy

Tokyo, Jan. 7 (Jiji Press)--Aozora Bank <8304> has struck a capital and business alliance deal with Vietnam's Orient Commercial Joint Stock Bank, to mark its first investment in a foreign bank, informed sources said Tuesday.

Aozora Bank will acquire a 15 pct stake in the Vietnamese bank as early as spring. The Tokyo lender has stayed away from foreign bank investment activities since it was remade with the backing of public funds from Nippon Credit Bank, which went bust in 1998.

Aozora Bank will provide know-how in online banking and assistance services for corporate mergers and acquisitions to the Vietnamese partner, which has strength in the field of extending loans to small companies.

The Japanese bank plans to acquire around a 10 pct share through a third-party allotment scheme and the remaining 5 pct stake from current shareholders.

The total acquisition costs, which have not been disclosed, are believed to be between 10 billion and 20 billion dollars. The bank plans to send two board directors.

[Copyright The Jiji Press, Ltd.]

Jiji Press