TCBS breaks international fundraising record with $175 million contract

On July 12, 2024, Techcom Securities Joint Stock Company (TCBS) completed the disbursement of the largest syndicated loan contract for a securities company in Vietnam worth up to 175 million USD (more than 4,450 billion VND). Five leading financial institutions in the region including Standard Chartered Bank, CTBC Bank, Taipei Fubon Bank, Taishin International Bank, and KGI Bank participated as joint arrangers and bookrunners (MLABs) for the largest unsecured syndicated loan ever for a securities company in Vietnam, worth 175 million USD. To attract many large financial institutions in the region to participate in the deal, on May 7, 2024, TCBS organized a Roadshow in Taiwan to promote its image and brand, and provide information to investors about TCBS's orientation, business strategy, prospects, and competitive advantages in the market. In this transaction, TCBS has affirmed its position as one of the securities companies with the highest credit rating with 2 factors: (i) being the first securities company in Vietnam to have Standard Chartered Bank arrange and finance a syndicated loan in USD. This successful transaction has attracted many large international financial institutions to participate in addition to MLABs; (ii) being the first securities company to successfully mobilize the largest unsecured loan in the Vietnamese securities industry worth 175 million USD, bringing the total cumulative value of international unsecured syndicated loans that TCBS has accessed since the end of 2020 to more than 761 million USD (more than 19,380 billion VND).

TCBS Chairman Nguyen Xuan Minh (left) and Standard Chartered Group Chairman José Viñals (right)

Ms. Nguyen Thi Thu Hien - General Director of TCBS said that the reputation and credit rating of a business are the decisive factors for international financial institutions to consider providing loans. TCBS has affirmed its capacity and position in the international market through continuously successfully mobilizing many unsecured loan contracts from large financial institutions. TCBS's strategy of diversifying capital sources from both domestic and foreign sources is a strategic step to become the largest Wealthtech company in Vietnam in terms of equity, profit and business efficiency. On the contrary, according to Ms. Hien, in reality, foreign institutions always want to find lending partners who are leading enterprises in the financial sector, with stability and development prospects, which is also the reason why TCBS is the first securities company in Vietnam to have Standard Chartered Bank arrange and finance a syndicated unsecured loan in USD. Ms. Nguyen Thuy Hanh, Deputy CEO of Corporate & Investment Banking, Standard Chartered Bank Vietnam, shared her joy at co-arranging this syndicated transaction. This is the first transaction as the Lead Arranger and Bookrunner for a loan by Techcom Securities, a subsidiary of Techcombank. Ms. Hanh said that Standard Chartered Bank is proud to be a long-standing partner of Techcombank Group and this important milestone further reinforces the strong commitment of both parties in providing effective financial solutions, supporting growth opportunities in the context of the strong development of Vietnam's securities and financial market.

TCBS Chairman Nguyen Xuan Minh, Standard Chartered Group Chairman José Viñals, General Director of Standard Chartered Bank Vietnam Michele Wee (2nd from left), Ms. Nguyen Thuy Hanh (2nd from right) and representatives of both sides

In addition, Ms. Swati Roy, Head of Financial Solutions for ASEAN and Australia, Standard Chartered Bank, also said that this syndicated loan has received strong commitments from the financial institution community to be able to successfully arrange with a value of up to 175 million USD. This loan has set a new milestone, being the largest syndicated loan in the Vietnamese securities industry to date. Standard Chartered Bank is honored to contribute to this success of Techcom Securities through its extensive knowledge of the market combined with the ability to originate and structure loans, along with a global distribution network. In the context of the Vietnamese stock market continuing to develop and record excitement again, TCBS plans to allocate new capital to invest in infrastructure and the most advanced technology platforms such as Machine Learning, GenAI... with the goals of: (i) Firstly, understanding the market and understanding customers to flexibly serve their asset management needs and save time; (ii) Second, develop TCBS's internal capacity to differentiate itself from competitors, and make effective, timely, and correct business decisions and policies. The company will continue to take advantage of its strong financial potential to maintain policies with the best costs on the market for customers such as Zero Fee transactions, margin loan packages with interest rates from only 0%/year, etc. Source: https://nhipsongkinhte.toquoc.vn/tcbs-pha-vo-ky-luc-huy-dong-von-quoc-te-voi-hop-dong-175-trieu-usd-20240712200847523.htm