The $500 million syndicated term loan of Techcombank was awarded the Best Syndicated Loan award in Vietnam in 2020 by The Asset. This is the second-largest syndicated loan in Southeast Asia in 2020 and the largest- ever syndicated loan to banks in the Vietnamese market.
|Techcombank’s deal awarded “Best Syndicated Loan in Vietnam” by The Asset’s Triple A Country Awards 2020
The loan facility was signed on April 17, 2020 with United Overseas Bank (UOB) as the coordinator and facility agent, and ANZ, CTBC Bank, First Abu Dhabi Bank, and Taishin Bank as mandated lead arrangers, underwriters, and book-runners.
Originally sized at $300 million, Techcombank’s inaugural offshore syndicated loan was launched in mid-February 2020 as part of its funding plan. Resting on the bank’s preeminent stature, strong brand, and impressive business growth in recent years, the facility received an enthusiastic response from the international syndication market. To accommodate the oversubscription from over 24 financial institutions from Australia, China, India, Singapore, Taiwan, and the United Arab Emirates (UAE), the facility amount was raised to $500 million. The loan has become the largest syndicated loan to banks in Vietnam and the second-largest in Southeast Asia in 2020, despite the market turmoil due to COVID-19.
“We are proud of the Best Syndicated Loan award announced by The Asset – one of Asia’s leading financial magazine – for Techcombank’s first successful syndicated loan transaction of $500 million. The award attests to international confidence in the bank and its impressive achievements in recent years. Techcombank’s strong standing enables us to support our customers to the fullest amind the external challenges in the troubled COVID-19 time,” said Jens Lottner, Techcombank CEO.
By the end of the third quarter, Techcombank has recorded a year-to-date pre-tax profit of VND10.7 trillion ($465.22 million), a 20.9 per cent on-year growth, meeting 82.4 per cent of the full-year target set by the bank’s shareholders. Its business performance has secured it a leading position in the industry. Despite the slowdown in economic activities and GDP growth in 2020 due to COVID-19, Standard & Poor’s (S&P’s) affirmed its “BB-“/stable/B rating for Techcombank. The bank’s extensive network and impressive profitability and capitalisation in the industry are core to its rating, stated S&P’s. Its deposit base also remains stable thanks to its strong brand and coverage.
Previously, Moody’s reaffirmed Techcombank’s Baseline Credit Assessment (BCA)’s rating at Ba3, a reflection of Techcombank’s stable asset quality, strong profitability, and robust capital foundation. Among 19 banks assessed by Moody’s, Techcombank is the sole bank to reach BCA’s topmost rank and on par with Vietnam’s sovereign rating.
Established in 1993, Techcombank is one of the largest joint-stock banks in Vietnam and a leading bank in Asia. Techcombank pursues a proven customer-centric strategy in providing a broad range of tailored banking solutions and services to almost 8 million retail customers and corporate clients in Vietnam through an extensive network of over 300 branches and transaction offices across the country and its market-leading digital banking and mobile banking services. The bank’s ecosystem approach implemented across selected key economic sectors further differentiates Techcombank in one of the fastest-growing economies in the world.