Singapore bank sells stake in Vietnam Prosperity Bank

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Singapore-based OCBC Bank has sold its 14.88 percent stake in Vietnam's VPBank

Singapore's OCBC Bank has sold its nearly 15 percent stake, equivalent to 85.8 million shares, in the Vietnam Prosperity Bank (VPBank).

It wrote to the State Securities Commission of Vietnam and VPBank to inform that it had ceased to be a shareholder as of November 22, news website VnExpress reported Thursday.

But it did not disclose whom it sold the shares to or at what price.

The Singapore bank first invested in VPBank in 2006 when it bought a 10-percent stake.

Two years later it paid $25.5 million to buy another 4.88 percent and become the second biggest shareholder in VPBank after the Ho Chi Minh City-based Chau Tho Investment JSC.

Earlier this year Chau Tho sold its 14.99 percent stake in VPBank.

In the first three quarters VPBank reported impressive credit growth of 28 percent, the highest in the banking sector, but its profit did not see a substantial rise since it had to make large provisions for bad debts.

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