Vietnamese agribusiness TTC AgriS bags $100 million unsecured loan

July 21, 2023 | 11:07
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Thanh Thanh Cong-Bien Hoa JSC (TTC AgriS), one of Vietnam's frontrunning agribusinesses, inked a deal on July 20 to secure an unsecured loan of up to $100 million.
Vietnamese agribusiness TTC AgriS bags $100 million unsecured loan

The loan, offered by a consortium of nine financial heavyweights, sees First Commercial Bank taking the helm as the lead.

The primary motive of this loan procurement centres around fortifying TTC AgriS' working capital for the coming year. According to First Commercial Bank, the consortium has expressed a potential commitment to consistently recapitalise TTC AgriS over a span of three years.

First Commercial Bank, established in 1899, is a well-entrenched player in the Asian banking industry. Boasting an equity capital of $7.5 billion as of December 2022, the bank operates an extensive network of 188 domestic branches and has a global footprint spanning 42 countries.

The successful loan application is a testament to the confidence that premier financial institutions place in TTC AgriS, particularly against the backdrop of heightened global economic uncertainties.

TTC AgriS has continuously proven its ability to attract substantial investments from leading global financial institutions. On June 16, the company concluded a trade finance agreement with the International Finance Corporation (IFC) and Sumitomo Mitsui Banking Corporation (SMBC).

As per the agreement, the IFC and SMBC have committed to jointly partake in trade financing for TTC AgriS, resulting in a total capital boost of $40 million. These funds will be channelled towards catalysing its business operations, enhancing production capacity, and broadening market outreach – all in alignment with TTC AgriS's strategic developmental trajectory and professional investor collaboration.

TTC AgriS has firmly ingrained itself within the IFC's Global Warehouse Finance Program, signifying its stature as a multinational agricultural enterprise in Vietnam. Such endorsements invariably encourage local banks to participate in the agricultural value chain, unlocking potential opportunities within this high-growth sector.

As of June 30, foreign ownership in TTC AgriS has witnessed a sturdy upward trajectory, registering a figure of 16 per cent – marking a significant 42 per cent increase on-year.

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By Nhat Minh

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