VIB Secures Impressive $280 Million Funding, Reinforcing Its Robust Standing in the Global Capital Market

Vietnam International Commercial Joint Stock Bank (HoSE: VIB) successfully closed a medium-long-term syndicated loan worth 280 million USD.

The Agreement was signed between VIB as the Borrower and 13 leading financial institutions around the world, namely United Overseas Bank Limited (“UOB”) as the Coordinator and Mandated Lead Arranger and Book-runner (“MLAB”), Mashreqbank PSC as Facility Agent and MLAB, Maybank as MLAB, and 10 other esteemed-financial institutions, which joined as credit partners.

Additional capital to promote core business

The additional capital from this syndicated loan will be used by the bank to finance its core retail lending activities. VIB’s lending portfolio has low concentrated risk, with the ratio of outstanding loans with collateral up to 92%. Overall, the structure of VIB’s retail loan portfolio is both diversified and balanced, including several key products ranging from housing and home repair loans, car loans, business loans to credit cards.

Moreover, the mobilization of this medium and long-term loan helps VIB strengthen its financial position, optimize funding cost, as well as maintain a stable capital structure, which will certainly reinforce VIB’s liquidity and operational efficiency. Notably, this is the second time that VIB has made an international long-term loan in 2023. Previously, in June 2023, VIB completed the drawdown of a 5-year loan worth 100 million USD from the International Finance Corporation (IFC). By the end of 2023, VIB’s total outstanding capital raised from the international capital market will reach nearly 400 million USD.

Affirming reputation in the international capital market with leading partners

Initially, VIB set a target for the initial syndicated loan size of 200 million USD, with a greenshoe option. After a series of successful roadshows in Singapore and Taiwan, VIB garnered attention from numerous international financial institutions from promising markets such as UAE, Kuwait, and Oman. This is a valuable opportunity for VIB to introduce itself to new markets, contributing to the global expansion of VIB’s brand.

With positive feedback from the market, VIB decided to increase the loan amount from 200 million USD to 280 million USD. With the participation of 13 reputable international banks with a global presence in the syndication process, this transaction’s success is a demonstration of the trust and appreciation for VIB’s outstanding business performance in its 10-year journey of transforming the retail banking model.

Representatives from VIB, UOB and Maybank – Coordinator and Mandated Lead Arranger and Book-runner of syndicated loan

Mr. Han Ngoc Vu, Chief Executive Officer of VIB, shared that: “With the retail-oriented strategy in recent years, long-term loan facility from the international market is one of our main capital mobilization channels. This syndicated loan not only helps VIB meet the growing credit demand from customers but also helps diversify and optimize our capital structure, ensuring strong liquidity and a healthy balanced sheet for sustainable growth goals.”

Ms. Lim Lay Wah, Group Head of Sector Solutions and Financial Institutions Group, UOB said: “The success of VIB’s largest syndicated term loan is testament of our deep understanding of Vietnam market. This helped VIB diversify its funding sources and tap into new sources of liquidity. The transaction also received positive responses from global investors, resulting in an oversubscription despite the ongoing global geopolitical dynamic. As the One Bank for ASEAN, we are well-positioned for growth in this dynamic market environment and will continue to stay committed in Vietnam for thirty years and beyond.”

Mr. Soon Su Long, Country CEO, of Maybank Vietnam, part of Maybank Group, the fourth largest bank in Asean by assets commented: “VIB stands out as one of the industry’s most profitable banks, with a distinctive retail-centric lending strategy. Beyond offering credit products to individual customers, VIB focuses on developing strategic non-credit business activities. This includes the development of products like credit cards and insurance, which contribute significant non-interest income to the bank. We expect that this transaction will mark the beginning of more collaborations with VIB, opening up new opportunities for joint development.”

Leading position with sustainable growth strategies

According to business partners, VIB is among the top 5 leading private banks in Vietnam. With high and stable growth momentum and operating efficiency, VIB has been in the top 6 best-listed banks in Vietnam for three consecutive years (2021-2023), according to Forbes.

VIB is the top 6 listed banks in Vietnam, according to Forbes

Another aspect that also impresses international partners is VIB’s digitalization strategy and application of the latesttechnologies into the developments of creative digital solutions for retail customers. By building a digital banking ecosystem with a series of applications that cater for different demands, VIB aims to optimize the customer experience and maintain a foundation for sustainable growth.

Representatives from VIB with participating parties in the syndicated loan

With an active presence on the international capital market in the past few years, VIB has been increasingly well-recognized by leading financial institutions as a trusted business partners, proven by a total credit limit of more than 2 billion USD from offshore commercial banks and development financial institutions.  Beside ordinary business activities, VIB has also allocated a large portion of the proceeds from offshore borrowings towards financing affordable housing mortgage and women-owned businesses, showing its firm commitment to contribute to mutual social goals.

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Source: Vietnam Insider