SINGAPORE: Singapore sovereign wealth fund GIC will buy a 7.7 percent stake in Vietnam’s biggest bank, both companies said in a joint statement on Monday.

GIC has signed a memorandum of agreement to buy 305.8 million new shares of Vietcombank, the fund’s first direct investment in a Vietnamese lender. The deal is estimated to be worth some $400 million in a company worth $6.9 billion, Bloomberg News said. Vietcombank is Vietnam’s largest lender by market capitalisation.

“This investment reflects our confidence in Vietnam’s long-term growth potential,” said Amit Kunal, GIC head of direct investments group for Southeast Asia, private equity and infrastructure.—AFP