VNDIRECT Securities Corporation (VND) has announced its enrollment in a US$75 million offshore unsecured syndicated loan with the greenshoe option to increase the total limit up to $200 million from foreign financial institutions.

A greenshoe option is a provision in an IPO underwriting agreement that grants the underwriter the right to sell more shares than originally planned.

This was the second offshore syndication VNDIRECT raised in 2022 to provide working capital for its legitimate business and operation activities.

Maybank Securities Pte Ltd, a member of Maybank Investment Banking Group, and Taipei Fubon Commercial Bank Co Ltd were the co-lead arrangers for the loan (mandated Lead Arrangers and bookrunners – MLABs).

The deal attracted eight other foreign banks from Taiwan, Hong Kong, and Singapore. Being 100 per cent unsecured, this facility proves the trust of the international capital market toward the business vision and mission of VNDIRECT. The term loan facility was short-term, under 12 months, with the interest rate on a Cumulative Compounded SOFR basis following the current international capital market standard.

Previously, VNDIRECT had successfully closed two other syndications respectively in September 2021 and December 2021 with a total amount of almost $200 million.

In the context of difficulties and challenges around the international and domestic capital market, VNDIRECT’s offshore syndication fundraising has shown VNDIRECT’s credit in the international capital market as well as its financial capability to fulfil its commitment to clients, shareholders, and partners.

Speaking about this fundraising, Nguyen Vu Long, General Director of VNDIRECT, said the company always focused on developing relationships with domestic and foreign financial institutions to build the foundation for a diversified financial products and services ecosystem to accommodate everyone’s demands. The continuous support from foreign financial institutions in this syndication proved the trust of partners towards VNDIRECT’s capability in financial product and services business and investment.

In the first nine months of this year, VNDIRECT earned VND1.7 trillion in profit before tax. In the securities market, VNDIRECT remained in 3rd in market share, and 2nd in Total Asset and Owner Equities. — VNS