JavaScript is off. Please enable to view full site.

Japan's SMFG to invest up to 150 bln yen in Vietnam's FE Credit

Japan's SMFG to invest up to 150 bln yen in Vietnam's FE Credit

Thursday, April 29, 2021, 09:17 GMT+7
Japan's SMFG to invest up to 150 bln yen in Vietnam's FE Credit
FE Credit's logo is seen atop an office building in Vietnam. Photo: Tuoi Tre

TOKYO -- Sumitomo Mitsui Financial Group Inc will invest up to 150 billion yen ($1.38 billion) in Vietnam’s biggest non-bank lender FE Credit, a spokesman said on Wednesday, as part of a strategy to look beyond a slow-growing domestic market.

SMFG, Japan’s second biggest lender by assets, said in a statement its consumer finance unit would acquire a 49% stake in FE Credit.

The Vietnamese firm’s valuation was $2.8 billion, its parent company said in a separate statement.

The deal, which was reported by the Nikkei newspaper earlier, comes as SMFG has sought to expand its business in Southeast Asia, given the ultra-low rate environment and shrinking population at home.

Jun Ohta, chief executive of SMFG, previously told Reuters the bank was looking to expand its business in markets including Indonesia, Vietnam, the Philippines and India.

FE Credit, a major consumer finance firm in Vietnam, has over 13,000 points of sales nationwide and provides financial solutions through consumer lending products and services, according to its website.

The Vietnamese company posted net profit of about $125 million for the financial year ended in December.

($1 = 108.9300 yen)

Reuters

More

Read more

;

Photos

VIDEOS

Vietnamese woman gives unconditional love to hundreds of adopted children

Despite her own immense hardship, she has taken in and cared for hundreds of orphans over the past three decades.

Vietnam’s Mekong Delta celebrates spring with ‘hat boi’ performances

The art form is so popular that it attracts people from all ages in the Mekong Delta

Vietnamese youngster travels back in time with clay miniatures

Each work is a scene caught by Dung and kept in his memories through his journeys across Vietnam

Latest news