Vietcap Securities raises $100 million in overseas loan

August 14, 2023 | 14:22
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Vietcap Securities has successfully secured a $100 million capital-backed loan from Mega International Commercial Bank, underscoring its growth ambitions and strengthening its financial standing.
Vietcap Securities raises $100 million in overseas loan

Vietcap Securities, a prominent player in the Vietnamese securities market, has announced the successful signing of a capital-backed loan agreement worth $100 million. The financing arrangement was facilitated by the Mega International Commercial Bank, with short-term interest rates benchmarked against the international foreign exchange market.

With this latest injection of capital, Vietcap is poised to mark yet another capital-raising round, following its accomplishment of five previous funding rounds. The positive reception from the market is a testament to Vietcap's credibility among investors and is anticipated to establish a precedent for future overseas capital partnerships.

Prior to this milestone, Vietcap has already secured significant international capital.

In July 2023, Vietcap secured $45 million in financing, facilitated by Shanghai Commercial and Savings Bank, Ltd. through its Offshore Banking division.

In October 2022, Vietcap successfully raised $105 million, accompanied by a Greenshoe option that extended the loan capacity to $150 million.

Maybank Securities Pte. Ltd and O-Bank Co., Ltd. played pivotal roles as underwriters and primary investment managers, with Malayan Banking Berhad, Singapore Branch, counted among the lending participants.

A recognition of $100 million in May 2022 was realised, thanks to the collaboration with Mega International Bank, accomplished through the bank's overseas banking branch.

In November 2021, Vietcap further augmented its capital with an additional $100 million, complemented by a Greenshoe option extending to $150 million. This was made possible through a consortium led by Maybank Kim Eng Securities Pte Ltd (now Maybank Securities Pte Ltd), in partnership with Malayan Banking Berhad, Singapore Branch.

A significant unsecured capital-backed loan of $40 million was secured in May 2020, spearheaded by a consortium of banks, with Ngân hàng Sinopac taking the lead.

Vietcap's leadership underscores the transformative potential of this substantial overseas financing, which promises to enhance the firm's operational capacity and stimulate its business growth endeavours.

This strategic initiative is aligned with Vietcap's commitment to harness external funding sources to capitalise on the evolving landscape of the Vietnamese financial sector. The decision to secure overseas funding mirrors the firm's adept financial management and its proactive approach to bolstering market presence.

As Vietcap continues to solidify its reputation as a reliable financial institution, the successful procurement of this $100 million loan amplifies its footing in both domestic and international investment realms. This move not only underscores Vietcap's dedication to augmenting shareholder value but also positions it favourably for prospective cross-border capital endeavours.

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By Tri Lam

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