|Transactions at Techcombank. — Photo courtesy of Techcombank|
HÀ NỘI — Việt Nam Technological and Commercial Joint Stock Bank (Techcombank) received full disbursement of its inaugural US$500 million syndicated loan facility (the Facility).
The Facility was signed on April 17 and approved by the State Bank of Việt Nam (SBV) on April 29.
The Facility is a 3-year senior unsecured loan which offers an interest margin of 1.50 per cent per annum over US dollar London Inter-Bank Offered Rate (LIBOR). Loan proceeds are for 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 United Arab Emirates – joined the transaction.
The Facility was co-ordinated by United Overseas Bank Limited (UOB), who also acted as the Facility Agent for the transaction. UOB, together with Australia and New Zealand Banking Group Limited, 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 (MLAUBs) jointly underwrote and arranged the Facility for Techcombank.
Lim Lay Wah, Managing Director and Global Head of Financial Institutions Group (Banks, Non-Bank Financial Institutions, Global Property Funds and Financial Sponsors), UOB, said: “At UOB, we have been steadfast in our commitment to contributing to Việt Nam’s economic growth and the continued development of the financial industry for more than 20 years.
"UOB is pleased to have been entrusted with coordinating Techcombank’s inaugural syndicated offshore loan facility. This landmark fundraising deal is the single largest syndicated loan transaction secured by a financial institution in Việt Nam.
"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.”
Phùng Quang Hưng, Managing Director and Standing 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 market’s confidence in Techcombank and marks a major milestone in the bank’s 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.”
Established in 1993, Techcombank is one of the largest joint stock banks in Việt Nam and a leading bank in Asia. Techcombank pursues a proven customer-centric strategy in providing a broad range of tailor-made banking solutions and services to almost 8 million retail and corporate customers in Việt Nam through an extensive network of over 300 transaction offices across the country and its market leading digital banking services. The bank’s ecosystem approach implemented across multiple chosen key economic sectors further differentiates Techcombank in one of the fastest growing economies in the world.
Techcombank is rated highest among banks in Việt Nam, at Ba3 from Moody’s and BB- from S&P and was named “Best Bank in Việt Nam” by Euromoney in 2018, “Việt Nam House of the Year” by Asia Risk and “Best Payments Bank in Việt Nam” by The Asian Banker in 2019. In the same year, the bank ranked 1st among the Vietnamese banks by Basel II CAR and 3rd among the top 500 most profitable private companies in Vietnam. Techcombank is listed on the Hồ Chí Minh Stock Exchange (HOSE) under the ticker TCB. — VNS