Techcombank has concluded a landmark $1 billion syndicated loan facility as the largest-ever medium and long-term syndicated loan for a Vietnamese financial institution.
The loan facility marks the private bank’s third approach to offshore capital markets, following its inaugural $500 million transaction in 2020 and $800 million financing completed last year.
The latest financing was selectively launched late December last year at an original target size of $700 million with a pre-funding option, and subsequently offered to a wider market this February, Techcombank said Monday.
Owing to stellar market response, the size was enlarged to $1 billion. The facility is comprised of three tranches with tenors of three, four and five years. The five-year tranche followed the successful precedent set earlier by Techcombank in its $800 million deal.
Standard Chartered Bank and United Overseas Bank (UOB) initially underwrote the financing, then were joined by mandated lead arrangers, underwriters and bookrunners namely ANZ, HSBC, and Sumitomo Mitsui Banking Corp. (SMBC).
Bank Negara Indonesia (Persero), Taiwan’s CTBC Bank, the State Bank of India, and Taipei Fubon Commercial Bank also came in as mandated lead arrangers and bookrunners.
Bryan Liew, head of leverage and acquisition finance syndicate, Standard Chartered Bank, said: “Once again, Techcombank has set the bar for the Vietnamese loan market, with an eye-catching $1 billion transaction.”
Alex Macaire, group CFO of Techcombank, said: “To achieve this milestone in the current challenging environment is a testament to the confidence and trust international investors have in Techcombank and the Vietnamese economy after conducting thorough research.”
"The loan facility is offered with an interest margin of 140 basis points on the three-year loan, 155 basis points on the four-year loan, and 170 basis points on the five-year loan, over compounded SOFR."
According to Techcombank, one of the largest joint stock banks in Vietnam, the loan proceeds, which are for general corporate and working capital purposes, would bolster its ability to support the increasing medium and long-term funding needs of its customers as the Vietnamese economy recovers from the pandemic.
A total 26 international banks, headquartered in Australia, mainland China, France, India, Indonesia, Japan, Singapore, Taiwan and the U.K., joined this $1 billion transaction.