The VIB logo is seen on a building in HCM City. (Photo courtesy of the bank) The agreement has been signed among VIB as the borrower and13 leading financial institutions around the world, including UnitedOverseas Bank Limited (UOB) as the Coordinator and Mandated Lead Arranger andBook-runner (MLAB), Mashreq Bank PSC as Facility Agent and MLAB, Maybank asMLAB, and 10 other esteemed financial institutions which joined as creditpartners.
Additional capital to promote core business
VIB said that the additional capital from this syndicated loanwill be used by the bank to finance its core retail lending activities. Thebank’s lending portfolio has low concentrated risk, with the ratio ofoutstanding loans with collateral up to 92%.
Overall, the structure of VIB's retail loan portfolio is bothdiversified and balanced, including several key products ranging from housingand home repair loans, car loans and business loans, to credit cards.
Moreover, the mobilisation of this medium and long-term loan helpsVIB strengthen its financial position, optimise funding costs, as well asmaintain a stable capital structure, which will certainly reinforce VIB’sliquidity and operational efficiency.
Notably, this is the second time that VIB has made aninternational long-term loan in 2023. Previously, in June 2023, VIB completedthe drawdown of a 5-year loan worth 100 million USD from the InternationalFinance Corporation (IFC). By the end of 2023, VIB's total outstanding capitalraised from the international capital market will reach nearly 400 million USD.
Affirming reputation in the international capital market withleading partners
Initially, VIB set a target for the initial syndicated loan sizeof 200 million USD, with a greenshoe option.
After a series of successful roadshows in Singapore and Taiwan,VIB garnered the attention of numerous international financial institutionsfrom promising markets such as the UAE, Kuwait and Oman. This is a valuableopportunity for VIB to introduce itself to new markets, contributing to theglobal expansion of VIB's brand.
With positive feedback from the market, VIB decided to increasethe loan amount from 200 million USD to 280 million USD.
"With the participation of 13 reputable international bankswith a global presence in the syndication process, this transaction’s successis a demonstration of trust and appreciation for VIB's outstanding businessperformance in its 10-year journey of transforming the retail bankingmodel," the bank said in a statement.
Han Ngoc Vu, Chief Executive Officer of VIB, shared: "Withthe retail-oriented strategy in recent years, long-term loan facility from theinternational market is one of our main capital mobilisation channels."
"This syndicated loan helps VIB not only meet thegrowing credit demand from customers but also diversify and optimise ourcapital structure, ensuring strong liquidity and a healthy balance sheet forsustainable growth goals," Vu said.
Lim Lay Wah, Group Head of Sector Solutions and FinancialInstitutions Group, UOB, said: “The success of VIB’s largest syndicated termloan is a testament to our deep understanding of the Vietnamese market.This helped VIB diversify its funding sources and tap into new sources ofliquidity."
He said the transaction also received positive responses fromglobal investors, resulting in an oversubscription despite the ongoing globalgeopolitical dynamic.
"As the One Bank for ASEAN, we are well-positioned for growthin this dynamic market environment and will continue to stay committed inVietnam for thirty years and beyond,” he added.
For his part, Soon Su Long, Country CEO of Maybank Vietnam, partof Maybank Group, the fourth largest bank in ASEAN by assets, said that VIBstands out as one of the industry's most profitable banks, with a distinctiveretail-centric lending strategy.
"Beyond offering credit products to individual customers, VIBfocuses on developing strategic non-credit business activities. This includesthe development of products like credit cards and insurance, which contributesignificant non-interest income to the bank."
"We expect that this transaction will mark the beginning ofmore collaborations with VIB, opening up new opportunities for jointdevelopment,” he said.
Leading position with sustainable growth strategies
According to business partners, VIB is among the top five leadingprivate banks in Vietnam.
With high and stable growth momentum and operating efficiency, VIBhas been recognised as one of the top six best-listed banks inVietnam for three consecutive years (2021-23) by Forbes.
Another aspect that also impresses international partners is VIB'sdigitalisation strategy and application of the latest technologies in thedevelopment of creative digital solutions for retail customers.
By building a digital banking ecosystem with a series ofapplications that cater to different demands, VIB aims to optimise the customerexperience and maintain a foundation for sustainable growth.
With an active presence on the international capital market in thepast few years, VIB has been increasingly well-recognised by leading financialinstitutions as a trusted business partner, proven by a total credit limit of over2 billion USD from offshore commercial banks and development financialinstitutions.
Besides ordinary business activities, thebank has also allocated a large portion of the proceeds from offshoreborrowings towards financing affordable housing mortgages and women-ownedbusinesses, showing its firm commitment to contribute to mutual social goals./.
VNA
