Vietnam’s VNDIRECT Securities successfully upsized their maiden syndicated loan facility from USD50m to USD100m

VNDIRECT Securities Corporation (VND) has successfully raised a one-year syndicated loan for total deal size of USD100m. This was VND’s maiden loan in the offshore syndication market as VND opted to tap a broader pool of liquidity in order to support its business growth.

Maybank Kim Eng Securities Pte. Ltd. acted as sole Mandated Lead Arranger and Bookrunner (MLAB) in this deal, which launched in late May 2021 at an initial deal size of USD50m with a greenshoe option of up to USD50m. Deal was oversubscribed with 11 banks joining to close the deal at the maximum commitment of USD100m.

The deal marks the first entrance into the offshore capital market by VNDIRECT, a top Vietnamese stockbroker which captured about a third of newly opened stockbroking accounts in 2020. The Hanoi-based company is also well known for its digitalization initiatives, for example being the country’s first brokerage firm to have applied electronic Know Your Customer (KYC) standards.

Commenting on the deal, Founder and Chairwoman of VNDIRECT, Madame Pham Minh Huong, said: “VNDIRECT operates under the principle of customer-centricity and has deployed an extensive range of financial products to meet the needs of all customer segments. To do that, we are always conscious of the need to build and develop relationships in both the domestic and international capital markets. And hopefully, with the success of our debut on the international debt capital market through this exclusive partnership with Maybank Group, this deal will help VNDIRECT deepen its collaboration with other regional and global financial institutions, which will be working along with us in our mission to provide relevant and impactful financial products to the Vietnamese consumer.”

The positive reception by offshore lenders to this deal is also a testament to VNDIRECT’s solid reputation in the market, and this deal is expected to pave the way for VNDIRECT to further access offshore liquidity to support its rapid expansion plan.