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|Techcombank ranked third among the top 500 most profitable private companies in Vietnam in 2019|
The facility, signed on April 17 and approved by the central bank (SBV) on April 29, 2020, is a three-year senior unsecured loan which offers an interest margin of 1.5 per cent per annum over dollar-denominated London Inter-Bank Offered Rate (LIBOR).
Loan proceeds are for the bank (Techcombank)’s general corporate and working capital purposes. The overwhelming success of this transaction affirms the international lenders’ solid confidence in Techcombank’s robust credit profile and customer-centric business strategy.
As part of Techcombank’s regular funding plan, the syndication was launched in mid-February this year, at an original deal size of $300 million. Due to the overwhelming response from the international syndication market, the facility amount was increased to $500 million to help accommodate the oversubscription.
A total of 24 financial institutions – headquartered in Australia, China, India, Singapore, Taiwan, and the United Arab Emirates (UAE) – joined the transaction.
The facility was co-ordinated by Singapore-based United Overseas Bank Ltd. who also acted as the Facility Agent for the transaction.
This bank (UOB), together with Australia and New Zealand Banking Group Ltd., CTBC Bank Co., Ltd., First Abu Dhabi Bank PJSC and Taishin International Bank Co., Ltd. (collectively known as the Mandated Lead Arrangers, Underwriters and Bookrunners) jointly underwrote and arranged the facility for Techcombank.
“At UOB, we have been steadfast in our commitment to contributing to Vietnam’s economic growth and the continued development of the financial industry for more than 20 years,” said Lim Lay Wah, managing director and global head of Financial Institutions Group at UOB.
|This landmark fundraising deal is the single largest syndicated loan transaction secured by a Vietnamese financial institution and Techcombank’s track record in the industry enabled it to attract the largest syndicate of lenders for a Vietnamese financial institution to date at the close of primary syndication.|
According to Lim, this landmark fundraising deal is the single largest syndicated loan transaction secured by a Vietnamese financial institution and Techcombank’s track record in the industry enabled it to attract the largest syndicate of lenders for a Vietnamese financial institution to date at the close of primary syndication.
“Our support for Techcombank is an example of how we help our financial institution clients achieve their business goals by identifying and structuring the most appropriate financing solutions for them,” said Lim.
Phung Quang Hung, managing director and deputy CEO of Techcombank said, “We are delighted with the successful closing of our debut international syndicated loan as planned despite the turbulence caused by the COVID-19 pandemic. The success of this transaction in this challenging environment is a testament to the international lenders’ confidence in Techcombank and marks a major milestone in our plans to diversify its funding.”
“On behalf of Techcombank, I would like to thank all the banks involved for their commitment, support, and diligence to ensure the success of this remarkable transaction,” Hung noted.
Founded in 1993, Techcombank provides a broad range of tailor-made banking solutions and services to almost eight million retail and corporate customers in Vietnam through an extensive network of over 300 transaction offices across the country and its market-leading digital banking services.
The bank is regarded as one of the top performers among banks in Vietnam, at Ba3 from Moody’s and BB- from S&P and was named Best Bank in Vietnam by Euromoney in 2018, Vietnam House of the Year by Asia Risk and Best Payments Bank in Vietnam by The Asian Banker in 2019.
In the same year, the bank, with the ticker code TCB on the Ho Chi Minh Stock Exchange (HSX), ranked first among Vietnamese banks by Basel II CAR and third among the top 500 most profitable private companies in Vietnam.