Vinacomin, VRG Joins Hands with SHB

Vietnam Coal and Minerals Group (Vinacomin) and Rubber Industrial Group (VRG) have signed a contract to become strategic partners with Sai Gon-Ha Noi Commercial Joint Stock Bank (SHB) in Hanoi.

Under the deal, the two industrial conglomerates will become SHB’s strategic partners in 2007 and contribute to increasing the bank’s legal capital to over VND3 trillion (US$187.5 million), partially through jointly issuing converted bonds.

 

The two industrial groups will install a payment network through SHB and give priority to products and services of SHB. Vinacomin and VRG recognize SHB as the most important bank supporting their domestic and international financial mobilization. SHB will also be allowed to sponsor projects and buy shares of Vinacomin and the Rubber Group at preferential prices when the two groups become joint stock companies and equitise their member companies.

The signatories said this long-term partnership, based on individual partners’ potential, would help establish a strong economic alliance promoting the development of each business as well as the national economy.