Sacombank gets unprecedented subordinated loan

 A 10-year US$ 150 million subordinated Tier 2 syndicated facility agreement was arranged for Sacombank by FMO.

 

IT was signed by a group of participating development banks in Vietnam. It is the first subordinated loan to a commercial bank in the country's history. To mark this special occasion, a signing ceremony was held at the Reunification Palace in Ho Chi Min City.

The transaction helps boost development of Vietnam's capital market and its SME sector. As the first-ever subordinated loan to a commercial bank in Vietnam, with long-term tenor and a syndication of development finance institutions only, this is truly a landmark transaction.

The facility strengthens Sacombank's capital position, further increasing its ability to meet loan demand from Vietnamese SMEs and retail customers, and extending its reach even further.

The Netherlands Development Finance Company or FMO Chief Investment Officer Jurgen Rigterink said: "FMO is proud to have arranged this first-of-its-kind loan in the history of Vietnam. This long-term commitment is a boost for the SME sector and a clear vote of confidence for the Vietnamese financial sector in general."

“FMO, as the lead participant, assisted Sacombank in structuring a subordinated loan facility to enhance the Tier-2 capital of the bank. Sacombank is committed to the effective execution of this capital. This is a genuine landmark transaction in Vietnam, and especially for Sacombank,” said Sacombank CEO Tran Xuan Huy.