Press Release

Vietnam Joint Stock Commercial Bank for Industry and Trade ("VietinBank"), one of the leading state-owned commercial banks in Vietnam, announced the signing of definitive agreements for the 20% strategic stake sale worth VND15.465 trillion, equivalent to US$743 million, with the price per share of VND24.000, to Bank of Tokyo-Mitsubishi UFJ ("BTMU").

This transaction will be the largest ever M&A transaction in Vietnam's banking industry to date and a milestone to VietinBank post its equitisation in 2008, enhance the bank’s financial capabilities and secure the stable long-term fundings for the bank's development plan and raise VietinBank's corporate profile with expected benefits from BTMU's global expertise.

This landmark deal will involve a strategic stake sale of 20% in VietinBank for BTMU, the core retail and commercial bank arm of Mitsubishi UFJ Financial Group Inc. ("MUFG"). The transaction was executed efficiently on a tight timetable and has shown the both parties' willingness in forming a strategic alliance to capitalize the growth potentials of Vietnam market.

VietinBank has sought regulatory approvals to issue 20% stake to BTMU via new share issuance, raising its charter capital to VND32.661 trillion, raising its shareholder capital to about VND45.000 trillion. Post the transaction, VietinBank will become the commercial bank with the biggest charter capital and strongest shareholder base with State Bank of Vietnam remaining the biggest major shareholder, followed by two strong foreign financial institutional investors being BTMU and IFC and its related parties.

Mr Pham Huy Hung, Chairman of VietinBank said: "In 2012, VietinBank makes it a priority to expedite the equitisation process, finalizing and completing negotiations with a second strategic partner to increase shareholders’ equity and pave the way for more secure operations while focusing on restructuring the Bank to become more modern and competitive. We hope and believe that the strategic cooperation between VietinBank and BTMU shall manage to realize significant values via leveraging from BTMU’s strong support, expertise sharing and high commitment in the management, operational and risk management activities in the banking industry".

Mr Nobuyuki Hirano, President of BTMU said: "As a part of a strategy aiming to further develop BTMU’s Asian business, the alliance aims, through collaboration between BTMU and VietinBank, to expand business through measures such as strengthening support for Japanese companies operating in Vietnam, where high growth is expected. Through this alliance with VietinBank, BTMU seeks to further strengthen its offering of comprehensive financial services in Vietnam and meet the diverse financial needs of its customers."

The transaction is advised by JPM Securities Asia Pacific Limited. and expected to be completed during the Fiscal Year 2013, subject to regulatory approvals.

Date: 28.12.2012

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