Vietnam's PE-backed Techcombank closes $1b offshore syndicated loan facility

The Vietnam Technological and Commercial Joint Stock Bank, commonly called Techcombank, has concluded a $1 billion syndicated loan facility, setting another milestone in its offshore fundraising activity, according to an announcement on Tuesday.

The syndication was launched in late December last year at an original target size of $700 million. This is the largest medium- and long-term syndicated loan raised by a Vietnamese financial institution to date.

The facility marks Techcombank’s third approach to the offshore loan syndication market, following its inaugural $500 million transaction in 2020 and a $800 million financing completed last year.

Twenty-six prestigious international banks — headquartered in Australia, China, France, India, Indonesia, Japan, Singapore, Taiwan, and the United Kingdom — joined this landmark transaction.

Standard Chartered Bank and United Overseas Bank Limited initially underwrote the financing and were joined by fellow mandated lead arrangers, underwriters, and bookrunners, namely Australia and New Zealand Banking Group Limited, The Hongkong and Shanghai Banking Corporation Limited, and Sumitomo Mitsui Banking Corporation.

Meanwhile, PT Bank Negara Indonesia (Persero) Tbk, CTBC Bank Co., State Bank of India, and Taipei Fubon Commercial Bank Co., Ltd. came in as mandated lead arrangers and bookrunners.  

The loan proceeds, which are for general corporate and working capital purposes, would bolster Techcombank’s ability to support the increasing medium and long-term funding needs of its customers as the Vietnamese economy recovers from the COVID-19 pandemic.

Techcombank is one of the largest joint stock banks in Vietnam with over 300 transaction offices across the country. The bank’s ecosystem approach, which is implemented across multiple key economic sectors, further differentiates Techcombank in one of the fastest-growing economies in the world.

In 2020, Techcombank secured an inaugural $500-million syndicated loan facility from 24 undisclosed investors.

The bank raised $370 million equity funding from Warburg Pincus in a pre-IPO deal in 2018, marking the largest private equity investment in Vietnam at that time.

After securing the financing from Warburg Pincus, Techcombank was listed on the Ho Chi Minh City Stock Exchange in the same year after raising $923 million in its IPO that attracted Singapore’s sovereign fund GIC as a cornerstone investor.

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