SSI inks its largest loan agreement worth $440 million with VietinBank

February 14, 2022 | 20:13
Vietnam’s prominent securities company SSI Securities JSC has just revealed its fresh loan agreement with VietinBank with a maximum loan amount of approximately $440 million. This is the biggest credit line contract signed by SSI with a joint-stock commercial bank in Vietnam to date, laying a concrete foundation for more extensive collaboration between the two major financial institutions in the country.
SSI inks its largest loan agreement worth $440 million with VietinBank

The first instalment of the $440 million credit line contract with Vietinbank – with a duration of no more than 12 months and an interest rate based on the short-term market – has been partially disbursed.

With its long-standing reputation and financial soundness, SSI boasts the largest foreign-backed unsecured capital, with up to $267.5 million available alone in 2021.

The fresh deal of $440 million is not only SSI's biggest-ever contract with a joint-stock commercial bank but also the most valuable source of unsecured credit in the domestic securities business landscape.

“Vietnam’s stock market is witnessing an unprecedented phase after two decades of development. As the country’s major brokerage, SSI is continuously enhancing its financial capacity in order to prepare for significant market growth and to better serve consumers’ ever-evolving needs by providing exceptional services at an affordable cost, as well as efficient capital management. Today, we are proud to say that SSI secures the most significant financial potential in the industry, illustrated by its impressive scale of charter capital. We also remain a robust capital increase strategy in place," Nguyen Vu Thuy Huong, managing director of Treasury Division cum managing director of Principal Investment SSI told VIR.

“SSI has successfully inked a large number of debt contracts with both domestic and foreign financial institutions, demonstrating the extremely high credit rating of the firm, as well as the effectiveness of how SSI manages and utilises the financial might.”

Particularly, SSI continues to focus on business activities that generate high profits while posing minimal risks, such as investing in valuable papers from renowned international investors and high-grade corporate bonds.

With a comprehensive proposal in place to expand its capital and augment bank loans on a regular basis, SSI is well prepared for the stock market's impending boom in the near future.

The SSI spokesperson also stressed that the successful conclusion of a loan agreement with state-owned VietinBank would pave the way for much-needed collaboration between SSI and the bank. In today's business climate, where there is constant pressure to develop new and competitive business paths based on service quality and operational efficiency, SSI aims to continue to explore new resources to increase efficiency in its business operations.

SSI's total assets as of December 31 were around $2.2 billion. Additionally, on January 10, the company's general meeting of shareholders authorised the proposal to issue shares to expand its charter capital to approximately $652 million.

In 2021, SSI generated total revenues of about $338 million and profit before tax of about $114.6 million, representing increases of 71.7 per cent and 112.6 per cent over the same period in 2020, respectively.

By Luu Huong

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