November 27, 2007

 

Sumitomo Mitsui Banking Corporation

 

Business and Capital Alliance with Vietnam Export Import Commercial Joint Stock Bank

 

Tokyo, November 27, 2007 --- Sumitomo Mitsui Banking Corporation (SMBC, President: Masayuki Oku) announced that a ceremony was held today in Tokyo for the official signing of a business and capital alliance agreement with Vietnam Export Import Commercial Joint Stock Bank ("Vietnam Eximbank"), one of the leading commercial banks in Vietnam.

 

The financial market in Vietnam is growing at a remarkable pace, and by establishing a collaborative framework in various business fields with Vietnam Eximbank, SMBC will be able to enhance its business opportunities in Vietnam by strengthening its financial services to Japanese corporate clients and moving into retail banking.

 

 

1.Outline of Capital Alliance

 

(1)SMBC will acquire 15% of ordinary shares issued by Vietnam Eximbank and become the largest shareholder.

 

(2)Purchase amount: US$225,000,000 equivalent Vietnamese Dong

 

(3)Subject to the approval of the State Bank of Vietnam , SMBC will acquire Vietnam Eximbank’s shares by the end of March, 2008.

 

2.Outline of Business Alliance

 

(1)Collaboration in retail banking business in Vietnam

 

SMBC will develop its retail banking business in Vietnam by providing business know-how in consumer finance and credit cards to Vietnam Eximbank.

 

(2)Strengthen support for Japanese clients operating in Vietnam

 

Through this alliance, SMBC corporate clients in Vietnam will be able to access Vietnam Eximbank’s financial products, services, and local information. In addition, SMBC Ho Chi Minh City Branch will utilize Vietnam Eximbank’s Vietnamese Dong loan facility and its domestic network in order to provide more value-added financial services to our clients.

 

(3)Collaboration in developing trade finance

 

Two banks will promote trade finance and securitization of accounts receivable related to trade between Vietnam and Japan .

 

(4)Technical assistance to Vietnam Eximbank

 

SMBC will provide corporate governance know-how, including risk management, in order to support Vietnam Eximbank’s modernization efforts.

 

3.Outline of Vietnam Eximbank

 

(1)                            Name:                                          Vietnam Export Import Commercial Joint Stock Bank

(2)                            Location of Head Office:                            7 Le Thi Hong Gam St , Dist 1, Ho Chi Minh City

(3)                            Chairman:                                    Mr. Nguyen Thanh Long

(4)                            Managing Director General:          Mr. Pham Van Thiet

(5)                            Establishment:                              May, 1989

(6)                      Total Assets:                                USD 1.25 Billion (as of June, 2007)

(7)                      Total Capital:                               USD 138 Million (as of June, 2007)