Vietnam's Techcombank takes $500 mln syndicated loan from foreign lenders

The three-year senior unsecured loan, which has a margin of 1.5% over Libor, was led by United Overseas Bank, which was joined by Australia and New Zealand Banking Group, CTBC Bank, First Abu Dhabi Bank PJSC and Taishin International Bank, Reuters said.

A total of 24 financial institutions — headquartered in Australia, China, India, Singapore, Taiwan, and the United Arab Emirates — joined the transaction.

“Loan proceeds are for general corporate and working capital purposes,” the bank, better known as Techcombank, said in a statement. 

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.

“We are delighted with the successful closing of our debut international syndicated loan as planned despite the turbulence caused by the COVID-19 pandemic”, Phung Quang Hung, managing director and standing deputy CEO of Techcombank, told Tuoi Tre News.

Established in 1993, Techcombank 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 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’s ecosystem approach implemented across multiple chosen key economic sectors further differentiates Techcombank is one of the fastest-growing economies in the world.

Techcombank is rated Ba3 by 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 ranked first among the Vietnamese banks by Basel II CAR and third among the top 500 most profitable private companies in Vietnam.

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Source: Reuters, Tuoi Tre News