South Korean lender KEB Hana Bank has completed its previously announced acquisition of a 15% stake in Bank for Investment and Development of Vietnam (BIDV).

The deal, worth nearly $875m, closed following the approval of relevant authorities in the two countries.

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The two lenders have also completed subsequent deal procedures, making KEB Hana Bank the first foreign strategic shareholder of BIDV.

BIDV acquisition: Background

In July this year, KEB Hana Bank signed an agreement to acquire a minority stake in the Vietnamese lender.

Under the transaction, BIDV issued more than 603.3 million shares to KEB Hana Bank. The Vietnamese government, which held 95.3% stake in BIDV before the deal, will now own around 80%.

As part of the deal, BIDV will also receive long-term technical support from KEB Hana Bank and its parent Hana Financial Group. The scope of this assistance includes technology and digital banking; retail banking development; and human resources development, among others.

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BIDV chairman of board of directors Phan Duc Tu said: “With the long-term strategic support from KEB Hana Bank, Hana Financial Group – the financial institution with outstanding governance capacity and successful experience in South Korea and many countries around the globe, BIDV will have the opportunity to fundamentally change the governance model, improve management capacity; risk management; develop modern products and services of high technology content; enhance competitiveness, better meet the needs of customers for products and services, and contribute to national development.”

Founded in 1957, BIDV is the largest lender in Vietnam with around $61bn in total assets. It offers a variety of services including banking, insurance, securities and financial investment through more than 1,000 locations.