Techcombank raises 800 million USD in offshore syndicated loan facility

Hanoi (VNA) - The Vietnam Technological and Commercial Joint Stock Bank (Techcombank) has successfully concluded its largest ever offshore syndicated loan facility at 800 million USD, a record size and landmark structure among 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 500 million USD with a pre-funding option. The facility amount was upsized to 800 million USD to accommodate the strong market response.

The dual tranche senior unsecured facility comprises a 600 million USD 3-year tranche and a 200 million USD 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 US dollar 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), which 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.

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./.