The VIB logo is seen on a building in HCM City. — Photos courtesy of the bank

HÀ NỘI — Vietnam International Commercial Joint Stock Bank (VIB) has closed a medium-long-term syndicated loan worth US$280 million.

The agreement has been signed among VIB as the borrower and 13 leading financial institutions around the world, including United Overseas Bank Limited (UOB) as the Coordinator and Mandated Lead Arranger and Book-runner (MLAB), Mashreqbank PSC as Facility Agent and MLAB, Maybank as MLAB, and 10 other esteemed financial institutions which joined as credit partners.

Additional capital to promote core business

VIB said that the additional capital from this syndicated loan will be used by the bank to finance its core retail lending activities. The bank’s lending portfolio has low concentrated risk, with the ratio of outstanding loans with collateral up to 92 per cent.

Overall, the structure of VIB's retail loan portfolio is both diversified and balanced, including several key products ranging from housing and home repair loans, car loans and business loans, to credit cards.

Moreover, the mobilisation of this medium and long-term loan helps VIB strengthen its financial position, optimise funding costs, as well as maintain a stable capital structure, which will certainly reinforce VIB’s liquidity and operational efficiency.

Notably, this is the second time that VIB has made an international long-term loan in 2023. Previously, in June 2023, VIB completed the drawdown of a 5-year loan worth $100 million from the International Finance Corporation (IFC). By the end of 2023, VIB's total outstanding capital raised from the international capital market will reach nearly $400 million.

Affirming reputation in the international capital market with leading partners

Initially, VIB set a target for the initial syndicated loan size of $200 million, with a greenshoe option.

After a series of successful roadshows in Singapore and Taiwan, VIB garnered the attention of numerous international financial institutions from promising markets such as UAE, Kuwait and Oman. This is a valuable opportunity for VIB to introduce itself to new markets, contributing to the global expansion of VIB's brand.

With positive feedback from the market, VIB decided to increase the loan amount from $200 million to $280 million.

"With the participation of 13 reputable international banks with a global presence in the syndication process, this transaction’s success is a demonstration of trust and appreciation for VIB's outstanding business performance in its 10-year journey of transforming the retail banking model," the bank said in a statement. 

Representatives from VIB, UOB and Maybank - Coordinator and Mandated Lead Arranger and Book-runner of the syndicated loan.

Hàn Ngọc Vũ, Chief Executive Officer of VIB, shared: "With the retail-oriented strategy in recent years, long-term loan facility from the international market is one of our main capital mobilisation channels."

"This syndicated loan helps VIB not only meet the growing credit demand from customers but also diversify and optimise our capital structure, ensuring strong liquidity and a healthy balance sheet for sustainable growth goals," Vũ said.

Lim Lay Wah, Group Head of Sector Solutions and Financial Institutions Group, UOB, said: “The success of VIB’s largest syndicated term loan is a testament to our deep understanding of the Vietnamese market. This helped VIB diversify its funding sources and tap into new sources of liquidity."

He said the transaction also received positive responses from global investors, resulting in an oversubscription despite the ongoing global geopolitical dynamic.

"As the One Bank for ASEAN, we are well-positioned for growth in this dynamic market environment and will continue to stay committed in Vietnam for thirty years and beyond,” he added. 

For his part, Soon Su Long, Country CEO of Maybank Vietnam, part of Maybank Group, the fourth largest bank in ASEAN by assets, said that VIB stands out as one of the industry's most profitable banks, with a distinctive retail-centric lending strategy.

"Beyond offering credit products to individual customers, VIB focuses on developing strategic non-credit business activities. This includes the development of products like credit cards and insurance, which contribute significant non-interest income to the bank."

"We expect that this transaction will mark the beginning of more collaborations with VIB, opening up new opportunities for joint development,” he said. 

Leading position with sustainable growth strategies

According to business partners, VIB is among the top five leading private banks in Việt Nam.

With high and stable growth momentum and operating efficiency, VIB has been recognised as one of the top six best-listed banks in Việt Nam for three consecutive years (2021-23) by Forbes.

VIB is one of the top 6 listed banks in Việt Nam, according to Forbes.

Another aspect that also impresses international partners is VIB's digitalisation strategy and application of the latest technologies in the development of creative digital solutions for retail customers.

By building a digital banking ecosystem with a series of applications that cater to different demands, VIB aims to optimise the customer experience and maintain a foundation for sustainable growth.

With an active presence on the international capital market in the past few years, VIB has been increasingly well-recognised by leading financial institutions as a trusted business partner, proven by a total credit limit of over $2 billion from offshore commercial banks and development financial institutions. 

Representatives from VIB with participating parties in the syndicated loan pose for a photo.

Besides ordinary business activities, the bank has also allocated a large portion of the proceeds from offshore borrowings towards financing affordable housing mortgages and women-owned businesses, showing its firm commitment to contribute to mutual social goals. — VNS