On December 7, the agreement was signed between VIB as the borrower and 13 financial institutions from around the world, namely United Overseas Bank Ltd. (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.

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 per cent.

Overall, the structure of VIB's retail loan portfolio is both diversified and balanced, including several key products ranging from credit cards to housing and home repair, vehicle, and business loans.

The mobilisation of this medium and long-term loan will help VIB strengthen its financial position, optimise funding costs, and maintain a stable capital structure, which will reinforce its liquidity and operational efficiency.

This is the second time that VIB has made an international long-term loan in 2023. Previously, in June, the bank completed the drawdown of a 5-year loan worth $100 million from the International Finance Corporation. By the end of the year, VIB's total outstanding capital raised from the international capital market will reach nearly $400 million.

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

With positive feedback from the market, VIB decided to increase the loan amount from the initial $200 million to $280 million. 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 in and appreciation for VIB's outstanding business performance on its 10-year journey of transforming its retail banking model.

Han Ngoc Vu, CEO of VIB said, "With our recent retail-oriented strategy, the long-term loan facility from the international market is one of our main capital mobilisation channels. This syndicated loan not only helps VIB meet customers' growing credit demand but also helps diversify and optimise our capital structure, ensuring strong liquidity and a healthy balance sheet."

Lim Lay Wah, group head of Sector Solutions and the Financial Institutions Group at UOB said, "The success of VIB’s largest syndicated term loan is testament to our profound understanding of the Vietnamese market. It has helped VIB diversify its funding and tap into new sources of liquidity."

"The transaction received positive responses from global investors, resulting in an oversubscription despite the ongoing global challenges. As the One Bank for ASEAN, we are well-positioned for growth in this dynamic market environment and will continue to stay committed to Vietnam for thirty years and beyond," added Wah.

Soon Su Long, country CEO of Maybank Vietnam 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," Long continued.

With high and stable growth momentum and strong operational efficiency, VIB has been among the six best-listed banks in Vietnam for three consecutive years (2021-2023), according to Forbes.

Another aspect that impresses its international partners is VIB's digitalisation strategy and its application of the latest technologies to develop creative digital solutions for retail customers. By building a digital banking ecosystem with a series of applications that cater to different demands, VIB aims to optimise its customer experience and maintain a foundation for sustainable growth.

With an active presence on the international capital market over the past few years, VIB has become increasingly well-recognised by leading financial institutions as a trusted business partner, proven by a total credit limit of more than $2 billion from offshore commercial banks and financial development institutions.

VIB has also allocated a large proportion of the proceeds from offshore borrowings towards financing affordable housing mortgages and loans for women-owned businesses, showing its firm commitment to contributing to social equality.