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Vietnam Technological and Commercial Joint Stock Bank (Techcombank) Raises USD 800 million in its largest ever offshore Syndicated Loan Facility

Vietnam Technological and Commercial Joint Stock Bank (“Techcombank”) has successfully concluded its largest ever offshore syndicated loan facility at USD 800 million (the “Facility”), and a record size and landmark structure amongst Vietnamese banks. This is Techcombank’s second approach to the offshore loan syndication markets after its maiden accomplishment last year, which also set a record.

The fully underwritten syndication was launched in June this year at an original deal size of USD 500 million with a pre-funding option. The facility amount was upsized to USD 800 million to accommodate the strong market response. The dual tranche senior unsecured facility comprises a USD 600 million 3-year tranche and a USD 200 million 5-year tranche. The facility offers an interest margin of 135 basis points per annum on the 3-year tranche and 162 basis points per annum on the 5-year tranche, over USD London Inter-Bank Offered Rate (“LIBOR”).

The 5-year tranche is a landmark for Vietnamese banks. The outstanding success of this transaction reaffirms the market’s trust and confidence in Techcombank, its robust risk management and customer centric business strategy. Techcombank’s exemplary track record has attracted the largest pool of liquidity for a Vietnamese financial institution to date. A total of 28 prestigious international banks and development finance institutions participated in the transaction.

Loan proceeds, which are for general corporate and working capital purposes, will bolster Techcombank’s ability to meet the increasing medium- and long-term funding needs of its customers in both foreign and local currencies.
Standard Chartered Bank (“SCB”), who initially underwrote the financing, was joined by fellow Mandated Lead Arranger Banks and Underwriters: Cathay United Bank, Maybank Kim Eng, State Bank of India, and Taishin International Bank.

Mr. Bryan Liew, Head of Leveraged and Acquisition Finance Syndicate of SCB, said, “The transaction was a landmark for the Vietnamese loan market, given its profile, size and tenor. The fact that it successfully attracted over 20 diversified lenders in syndication and was upsized by 60% is clear testament to the bank market’s confidence in Techcombank’s financial profile and growth trajectory. We proudly delivered this milestone deal in close co-operation with Commercial, Corporate and Institutional Banking team led by Ms. Nguyen Thuy Hanh, Deputy CEO, SCB Vietnam. We thank Techcombank for their trust in SCB and our franchise.”

Mr. Bang Trinh, Group Chief Financial Officer cum Chief Strategy and Corporate Development Officer of Techcombank said, “The success of our syndicated loan in terms of size, structure, tenor and participation showcases the continued belief international lenders have in Techcombank’s and Vietnam’s long-term growth prospects, despite the challenges presented by COVID-19. With this funding, Techcombank is well-positioned to support growing customer needs for medium- and long-term funding. On behalf of Techcombank, I would like to thank all the banks involved for their commitment, support and confidence in Techcombank and the Vietnam market.”
 
ABOUT TECHCOMBANK
Techcombank is listed on the Ho Chi minh Stock Exchange (HoSE) as TCB VN. It was established in 1993 as Vietnam was transitioning from a centrally planned, to more market-oriented economy.

Techcombank now is one of the largest joint stock banks in Vietnam, and a leading bank in Asia. Techcombank pursues a proven customer-centric strategy in providing a broad range of banking solutions and services to over 8.9 million retail and corporate customers in Vietnam through an extensive network of over 300 transaction offices across the country. The bank’s ecosystem approach, which is implemented across multiple key economic sectors, further differentiates Techcombank in one of the fastest growing economies in the world.

Moody’s rates Techcombank the highest among Vietnam banks with a Ba3, Positive Outlook and the only bank being constrained by the sovereign rating. The Bank is also rated by S&P with BB-, Stable Outlook.

The Bank was named ‘Best Bank in Vietnam’ by Euromoney in 2018 and 2021, and ‘Best Bank in Vietnam‘s by FinanceAsia in 2020, 2021.