Warburg Pincus steps into Vietnam banks as others exit

The private equity firm is set to invest over $370 million in Techcombank to tap into growing middle-class demand for banking services, just as foreign banks sell out of local peers.

Committing further to Vietnam just as some banks pull out, Warburg Pincus is set to make the largest-ever private equity bet on Vietnam by investing more than $370 million in Techcombank. 

Known formally as the Vietnam Technological and Commercial Joint Stock Bank, Techcombank is one of the country's biggest private-sector joint-stock commercial banks based on last year's pre-tax profits.

The move, announced in a joint statement on Monday, comes as foreign banks exit some of their local banking partners, partly due to punitative capital rules under Basel III for minority investments, deteriorating capital levels at Vietnamese banks, and concerns about non-performing loans NPLs....

¬ Haymarket Media Limited. All rights reserved.

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