On May 14, Vietnam Technological and Commercial Joint-Stock Bank (Techcombank) was fully disbursed the first $500 million international syndicated loan. This loan was signed on April 17, 2020 and approved by the State Bank of Vietnam (SBV) on April 29.
This is a three-year unsecured loan with the interest rate equal to the interbank USD lending rate (LIBOR) plus the amplitude of 1.50 percent per year. The loan amount is used to supplement the bank’s general business capital. As part of Techcombank’s usual capital raising plan, this syndicated loan transaction was officially offered to investors in mid-February this year, with an initial expected size of $300 million.
In order to meet the huge loan registration demand from the international capital market, the loan size was then decided to increase to $500 million.
This syndication transaction has attracted the participation of 24 financial institutions based in Australia, China, India, Singapore, Taiwan (China) and the United Arab Emirates. The loan is coordinated by United Overseas Bank Limited (UOB), and is also the loan management representative.
UOB, together with Australia and New Zealand Banking Group Limited; CTBC Bank Co., Ltd; First Abu Dhabi Bank PJSC and Taishin International Bank Co., Ltd co-arrange this loan for Techcombank.
Phung Quang Hung, Chief Executive Officer, Standing deputy general director of Techcombank said: “We are very pleased with the successful mobilisation of the first international syndicated loan as planned, despite the difficult context of the Covid-19 pandemic.
The success of the transaction demonstrates the trust of the international market for Techcombank and marks an important milestone in our diversification plan. On behalf of Techcombank, I would like to thank all participating banks for their commitment and great effort to ensure the success of this important transaction.”
