Transactions at Techcombank. This is Techcombank’s second approach to the offshore loan syndication markets after its maiden accomplishment last year, which also set a record. (Photo:VNA) This is Techcombank’s second approach to the offshore loansyndication markets after its maiden accomplishment last year, which also set arecord.
The fully underwritten syndication was launched in June thisyear at an original deal size of 500 million USD with a pre-funding option. Thefacility amount was upsized to 800 million USD to accommodate the strong marketresponse.
The dual tranche senior unsecured facility comprises a 600million USD 3-year tranche and a 200 million USD 5-year tranche. The facilityoffers an interest margin of 135 basis points per annum on the 3-year trancheand 162 basis points per annum on the 5-year tranche, over US dollar LondonInter-Bank Offered Rate (LIBOR).
The 5-year tranche is a landmark for Vietnamese banks. The outstanding success of this transaction reaffirms themarket’s trust and confidence in Techcombank, its robust risk management andcustomer-centric business strategy.
Techcombank’s exemplary track record has attracted thelargest pool of liquidity for a Vietnamese financial institution to date. Atotal of 28 prestigious international banks and development financeinstitutions participated in the transaction.
Loan proceeds, which are for general corporate and workingcapital purposes, will bolster Techcombank’s ability to meet the increasingmedium- and long-term funding needs of its customers in both foreign and localcurrencies.
Standard Chartered Bank (SCB), which initially underwrotethe financing, was joined by fellow Mandated Lead Arranger Banks andUnderwriters: Cathay United Bank, Maybank Kim Eng, State Bank of India, andTaishin International Bank.
Bryan Liew, Head of Leveraged and Acquisition FinanceSyndicate of SCB, said the transaction was a landmark for the Vietnamese loanmarket, given its profile, size and tenor./.
VNA
