Techcombank raises US$800 million in its largest ever offshore syndicated loan facility

Saturday, Oct 16, 2021 15:33

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.— VNS Photo

Techcombank has successfully concluded its largest ever offshore syndicated loan facility at US$800 million, 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 with a pre-funding option. The facility amount was upsized to $800 million to accommodate the strong market response. The dual tranche senior unsecured facility comprises a $600 million 3-year tranche and a $200 million 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. The fact that it successfully attracted over 20 diversified lenders in syndication and was upsized by 60 per cent is clear testament to the bank market’s confidence in Techcombank’s financial profile and growth trajectory. We proudly delivered this milestone deal in close co-operation with the Commercial, Corporate and Institutional Banking team led by Nguyen Thuy Hanh, Deputy CEO, SCB Vietnam. We thank Techcombank for their trust in SCB and our franchise.”

Trinh Bang, Group Chief Financial Officer and Chief Strategy and Corporate Development Officer of Techcombank said: “The success of our syndicated loan in terms of size, structure, tenor and participation showcases the continued belief international lenders have in Techcombank’s and Viet Nam’s long-term growth prospects, despite the challenges presented by COVID-19. With this funding, Techcombank is well-positioned to support growing customer needs for medium- and long-term funding. On behalf of Techcombank, I would like to thank all the banks involved for their commitment, support and confidence in Techcombank and the Viet Nam market.” — VNS

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