“TCBS Shatters International Fundraising Records with a $175 Million Deal”

Five leading financial institutions in the region, including Standard Chartered Bank, CTBC Bank, Taipei Fubon Bank, Taishin International Bank, and KGI Bank, joined as co-arrangers and bookrunners (MLABs) for the largest-ever unsecured syndicated loan for a securities company in Vietnam, amounting to USD 175 million.

To attract the participation of many large regional financial institutions in the deal, on May 7, 2024, TCBS organized a roadshow in Taiwan to promote its image and brand, providing investors with information about the company’s orientation, business strategy, prospects, and competitive advantages in the market.

In this transaction, TCBS affirmed its position as one of the securities companies with the highest credit ratings, with two notable factors: (i) it is the first securities company in Vietnam to be arranged and financed by Standard Chartered Bank for a USD-denominated syndicated loan. This successful transaction attracted the participation of several other large international financial institutions in addition to the MLABs; (ii) it is the first securities company to successfully raise the largest unsecured loan in the Vietnamese securities industry, amounting to USD 175 million, bringing the cumulative value of international unsecured syndicated loans that TCBS has accessed since the end of 2020 to over USD 761 million (over VND 19,380 billion).

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

Ms. Nguyen Thi Thu Hien, CEO of TCBS, said that the reputation and credit rating of an enterprise are decisive factors for international financial institutions to consider providing loans. TCBS has affirmed its capacity and position in the international market through the continuous successful mobilization of many unsecured loan contracts from large financial organizations. TCBS’s strategy to diversify capital sources, both domestically and internationally, is a strategic step towards becoming the largest Wealthtech company in Vietnam in terms of equity, profit, and business efficiency.

On the other hand, according to Ms. Hien, foreign institutions always seek to lend to leading enterprises in the financial sector that have stability and development prospects. This is also the reason why TCBS is the first securities company in Vietnam to be arranged and financed by Standard Chartered Bank for an unsecured syndicated loan in USD.

Ms. Nguyen Thuy Hanh, Deputy General Director of Corporate & Investment Banking, Standard Chartered Bank Vietnam, shared her delight in being a co-arranger for this transaction. This is the first deal in which Standard Chartered Bank acts as the main arranger and bookrunner for a loan to Techcom Securities, a subsidiary of Techcombank. Ms. Hanh said that Standard Chartered Bank is proud to be a long-term partner of the Techcombank Group, and this important milestone further strengthens the strong commitment of both parties in providing effective financial solutions and supporting growth opportunities in the context of the vibrant development of Vietnam’s financial and securities market.

TCBS Chairman Nguyen Xuan Minh, Standard Chartered Group Chairman José Viñals, Standard Chartered Bank Vietnam CEO 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 at Standard Chartered Bank, said that the syndicated loan received strong commitments from the financial community, enabling a successful arrangement of up to USD 175 million. This loan has set a new record as the largest syndicated loan in the Vietnamese securities industry to date. Standard Chartered Bank is honored to contribute to the success of Techcom Securities through its deep market knowledge combined with loan origination and structuring capabilities, along with its global distribution network.

As the Vietnamese stock market continues to develop and regain its vibrancy, TCBS intends to allocate new capital to invest in advanced infrastructure and technology platforms, such as Machine Learning and GenAI. The company aims to: (i) First, understand the market and customers to flexibly serve their wealth management and time-saving needs; (ii) Second, develop TCBS’s internal capabilities to differentiate itself from competitors and make effective, timely, and correct business decisions and policies.

The company will continue to leverage its strong financial position to maintain market-leading policies, such as Zero Fee trading, margin loans with interest rates from 0%/year, etc.