Vietnam Technological and Commercial Joint Stock Bank, commonly known as Techcombank, has secured an inaugural $500-million syndicated loan facility from 24 undisclosed investors.
The three-year senior unsecured loan, which was raised for general corporate and working capital purposes, offers an interest margin of 1.5 per cent per annum over US dollar-denominated London Inter-Bank Offered Rate (LIBOR), Techcombank said in a statement.
The syndication was launched in mid-February this year with an original target of $300 million. The lenders are headquartered in Australia, China, India, Singapore, Taiwan and the United Arab Emirates, the Vietnamese bank said.
The facility was coordinated by United Overseas Bank (UOB), which also acted as the facility agent for the transaction. UOB, together with Australia and New Zealand Banking Group, CTBC Bank, First Abu Dhabi Bank and Taishin International Bank, underwrote and arranged the loan for Techcombank.
“This landmark fundraising deal is the single largest syndicated loan transaction secured by a financial institution in Vietnam,” said Lim Lay Wah, managing director and global head of financial institutions group at UOB.
Phung Quang Hung, managing director and standing deputy CEO of Techcombank, said the transaction was a part of the Hanoi-headquartered commercial lender’s plans to diversify its funding.
The bank raised a $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.
Techcombank’s market capitalisation currently stands at about $3.2 billion.
The 27-year-old bank recorded 2.5 trillion dong ($107.2 million) in profit after tax in the first quarter of 2020, representing a 20 per cent year-on-year increase.