chevrons

Back to Previous Page

TCB raised $500mn in an international syndicated loan at LIBOR +1.5%

Techcombank (TCB) just announced to receive a fully drawn-down $500mn syndicated loan from 24 international financial institutions. The loan is to finance for working capital and diversify the bank’s funding structure. This loan is a 3- year senior unsecured one which offers an interest rate of LIBOR plus a spread of 1.5% (the current 6-month LIBOR is 0.66%). The initial plan was to raise $300mn, but thanks to the overwhelming response from the international market, the loan size was increased to $500mn. In our opinion, this is good news for TCB as the bank can benefit from the current global low interest rate environment and eventually improve its net interest margin. We currently project 2020F net profit of the bank to increase by 4.5% y/y. At the current stock price, it is trading at 2020F P/E and P/B of 6.7x and 1.0x respectively.

Media coverage and the company’s press release are in the following links: dealstreetasia and techcombank

On the sector perspective, this facility shows a strong interest in Vietnamese banks from international capital markets despite Moody’s recent cut of the outlook of some Vietnamese banks from neutral to negative, for its worries on the impact of COVID-19 to banks’ earnings. We think while it is true that the pandemic will have an impact on the banking system, the situation is, nevertheless, controlled very well in Vietnam and almost all activities have reopened. The State Bank of Vietnam is also active in supporting the economy by offering loan restructure, interest rate cut, etc. As a result, earnings will only be impacted in the short-term but is expected to recover strongly in 2021.

Related News & Insights
Find out more navigation_button
news

Vietnam is laying the foundation for a national carbon market—an important step toward aligning its economy with global climate and trade standards. On June 11, 2025, Vietnam launched the pilot phase of its national Emissions Trading Scheme (ETS), covering steel, cement, and thermal power—sectors responsible for nearly half of the country’s CO₂ emissions. A centralized […]

Read Newsarrow
news

Today, 1 July 2025, Vietnam’s new two-tier local governments started after consolidating from 63 to 34 provinces and cities, a sweeping administrative reform that would be unthinkable in many countries due to its complexity. What’s most remarkable is not just the scale of this change, but the speed. From the time General Secretary Tô Lâm […]

Read Newsarrow
news

Free Public Schooling in Vietnam: A National Milestone Vietnam has announced a nationwide free public school tuition policy for all students, a landmark decision that underscores a broader shift in national priorities. After some years of relatively modest growth in education spending, the government is now placing human capital at the center of its State […]

Read Newsarrow
Find out more navigation_button