Techcombank awarded 'Best Syndicated Loan'

By Van Pham   December 21, 2020 | 06:00 am PT
The $500 million syndicated term loan of Vietnam Technological and Commercial Joint-stock Bank (Techcombank) was named "Best Syndicated Loan" in The Triple A Country Awards 2020.

This is also the second largest syndicated loan in Southeast Asia for 2020 and the largest ever in Vietnam.

The loan facility was signed on April 17, 2020 with United Overseas Bank (UOB) as coordinator and facility agent, and ANZ, CTBC Bank, First Abu Dhabi Bank, and Taishin Bank as mandated lead arrangers, underwriters, and bookrunners.

Originally sized at $300 million, Techcombank’s inaugural offshore syndicated loan was launched in mid-February 2020 as part of its funding plans. Resting on the bank’s preeminent stature, strong brand, and impressive business growth in recent years, the facility received enthusiastic response from the international syndication market.

To accommodate oversubscription from over 24 financial institutions in Australia, mainland China, India, Singapore, Taiwan and United Arab Emirates (UAE), the facility amount was raised to $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 and weather external challenges in the troubled Covid-19 time," said Jens Lottner, Techcombank CEO.

By the end of the third quarter, Techcombank had recorded a year-to-date profit before tax of VND10.7 trillion, a 20.9 percent year-on-year growth from 2019, meeting 82.4 percent of full year targets for 2020 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 capitalization in the industry are core to its rating," stated S&P’s. Its deposit base also remains stable thanks to a strong brand and coverage.

Previously, Moody’s reaffirmed Techcombank’s Baseline Credit Assessment (BCA) rating at Ba3, a reflection of its stable asset quality, strong profitability, and robust capital foundation. Among 19 banks assessed by Moody’s, Techcombank alone reached BCA’s topmost ranking, on par with Vietnam’s sovereign rating.

Established in 1993, Techcombank is one of the largest joint stock banks in Vietnam and a leader in Asia. It has provided a broad range of tailored banking solutions and services to almost eight million retail customers and corporate clients in Vietnam, with an extensive network of over 300 branches and transaction offices across the country along with market-leading digital and mobile banking services.

Techcombank is recognized as "Best Bank in Vietnam 2020" by FinanceAsia, "2020 Best Solution Provider for Small and Medium-sized Enterprises (SMEs)", and "2020 Best Home Loan Product" by The Asian Banker.

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