Japan's Aozora Bank Ltd. agreed to acquire a 15% stake in Vietnam's Orient Commercial Joint Stock Bank, also known as OCB Bank, under a capital and business alliance between the two lenders.
Under the partnership, Aozora Bank will also appoint some of its directors to OCB Bank's board, according to a Jan. 8 release.
The deal is expected to be worth about ¥15 billion, The Nikkei reported the same day.
Following the stake acquisition, OCB Bank will be an equity-method affiliate of the Japanese lender. The move is part of Aozora Bank's strategy to form alliances with financial institutions across Asia to capitalize on the region's growth, as well as promote initiatives to contribute to the development of Vietnam's economy.
DealStreetAsia recently reported that OCB Bank was considering selling an 11% stake to Aozora Bank through a private placement. The Vietnamese bank also said it was planning to list its shares on the Ho Chi Minh City bourse in 2020.
As of Jan. 7, US$1 was equivalent to ¥108.59.