The signing ceremony of a co-operation agreement on capital arrangement advisory took place today between Saigon-Hanoi Bank Finance Co., Ltd. (SHB Finance) and SHS Saigon-Hanoi Securities JSC (SHS) at the former’s headquarters in Hanoi.
|SHB Finance CEO Dinh Quang Huy (left) and SHS CEO Vu Duc Tien at the signing ceremony |
Under the agreement, SHS was selected to become the capital arrangement advisory partner for SHB Finance through issuances of certificates of deposit (CDs). The minimum distributed CD volume was set at VND1.5 trillion ($65.2 million) for a 12-month term.
Besides enjoying the approved credit limit of maximally 10 per cent of its parent bank SHB’s equity, the fresh move aims to help SHB Finance to become self-reliant in their business operation in 2019.
This is the second round of CD issuance of SHB Finance since its official entry in the Vietnamese consumer finance market from last August.
The first round took place by virtue of support from advisory partner VN Direct Securities JSC with distributed volume touching VND200 billion ($8.7 million).
Pursuing the sustainable development target and building a prestigious brand that inherits the dynamic and effective attributes of the parent bank SHB, since the inception, SHB Finance has paid due heeds to distinction to help set it apart from other market players.
|By the end of last year, SHB Finance posted impressive business figures, less than half a year after going into operation. |
The distinction lies in its strenuous efforts to ensure information transparency to investors, its experienced and dedicated leadership, decent business culture at the workplace, and perfect IT system.
“SHB Finance’s upbeat results during the five months after its establishment last August attest to the company’s well-conceived development strategy. These outcomes, however, are still modest and require innovative sprit and big thinking right from small deeds,” said Thai Quoc Minh, a member of SHB Board of Management and chairman at SHB Finance, at the signing event.
“This year, we focus on three core targets: speed – efficiency – safety. I am confident corporate investors and customers will choose an organisation that makes transparence in operation a focus of its business,” Minh added.
SHB Finance, a unit wholly owned by SHB, came into being in August 2018 with VND1 trillion ($43.5 million) in charter capital.
By the end of last year, the company posted impressive business figures. Accordingly, the company reported VND709 billion ($30.8 million) in outstanding balance and 90,000 customers after five months in operation, exceeding the set target by 46 per cent.
Last November, it reported profit after only four months of operation.