SHB's headquarters in Hà Nội. — Photos courtesy of the bank

HÀ NỘI — S&P Global Ratings has assigned an AA long-term issue rating to a proposed Singapore dollar-denominated senior unsecured bond to be issued by Saigon-Hanoi Commercial Joint Stock Bank (SHB) and guaranteed by the Credit Guarantee and Investment Facility (CGIF), a trust fund of the Asian Development Bank (ADB).

CGIF was established to promote the development of local currency bond markets in ASEAN+3. Through its credit guarantee mechanism, the fund helps eligible companies access regional capital markets, broaden their investor base and diversify medium- and long-term funding sources.

According to S&P Global Ratings, the bond’s rating is equivalent to CGIF’s AA long-term foreign currency issuer credit rating, with a Stable outlook, reflecting the guarantee’s unconditional, timely and irrevocable nature.

Access to international capital markets

An AA rating is within the high-grade investment category and indicates a very strong capacity to meet financial commitments. The rating is expected to enhance the bond’s credit profile and broaden its appeal to international institutional investors with stringent credit quality requirements.

The proposed Singapore dollar bond is part of SHB’s strategy to diversify its funding sources, expand medium- and long-term financing channels and tap developed capital markets in the region.

The bank plans to launch an international bond offering and arrange an international syndicated loan in October 2026. The State Securities Commission of Vietnam has approved SHB’s registration dossier for the international bond offering under Document No 9903/UBCK-QLCB. On October 12, the Singapore Exchange granted in-principle approval for the bond’s listing.

Completion of the relevant regulatory procedures provides a basis for SHB to pursue its international fundraising plans, diversify its funding currencies and investor base and strengthen its flexibility in capital management to support business expansion and sustainable growth.

The AA rating, backed by CGIF’s guarantee, marked an important milestone in the bank’s efforts to expand its presence in regional capital markets.

A SHB representative said the AA rating, backed by CGIF’s guarantee, marked an important milestone in the bank’s efforts to expand its presence in regional capital markets.

The transaction demonstrated SHB’s ability to structure funding arrangements in line with international requirements while broadening access to medium- and long-term capital to support safe, efficient and sustainable development, the representative said.

Building capacity for international transactions

The transaction, involving CGIF, reflects SHB’s capacity to work with multilateral institutions, financial advisers and international partners to meet the requirements of regional capital markets.

Beyond enhancing the bond’s credit profile, CGIF’s guarantee is expected to raise SHB’s profile among international investors and provide a foundation for the bank to explore a wider range of funding instruments in the future.

The rating comes as SHB steps up its international integration and cooperation. In 2025, the bank successfully secured two medium-term US dollar syndicated loans linked to environmental, social and governance (ESG) criteria, totalling US$600 million and attracting 26 international financial institutions.

The transactions provided additional medium- and long-term funding while helping SHB expand its partner network, strengthen its capacity to execute international deals and increase its presence in global financial markets.

Alongside diversifying its international funding sources, SHB has developed a Sustainable Finance Framework setting out principles for the use of proceeds, project evaluation and selection, fund management, and reporting on allocations and impacts.

With its positioning as a “new-generation bank of national stature”, SHB identifies international integration, sustainable development and stronger financial capacity as key pillars of its development strategy.

The bank plans to continue strengthening its financial foundations, diversifying funding sources, expanding its partner ecosystem and accelerating digital transformation, while improving governance, risk management and transparency in line with international practices.

Through transactions and partnerships with reputable multilateral financial institutions and international partners, SHB aims to strengthen its capacity to provide financing, support customers through their transformation and contribute to Việt Nam’s development of a modern, green economy.

With 33 years of operation, SHB is among Việt Nam’s four largest private joint-stock commercial banks by scale.

By 2030, the bank aims to become a leader in operational efficiency, a preferred digital bank and the country’s best retail bank. It also seeks to rank among the leading providers of capital and financial solutions for strategic corporate customers with ecosystems, supply chains and value chains, as well as businesses pursuing green development, small- and medium-sized enterprises and individual customers.

By 2035, SHB aims to become a modern, digital and green bank among the leading financial institutions in the region. — VNS