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Banking & Finance

Debtwire: Loan volumes up in 1H

Released at: 17:00, 30/07/2019

Debtwire: Loan volumes up in 1H

Photo: Acuris

USD syndicated and club loans raised by Vietnamese entities rose 182% y-o-y in first half.

by Doanh Doanh

USD syndicated and club loans raised by Vietnamese entities rose 182 per cent year-on-year in the first half, according to Debtwire, with deals from foreign manufacturers’ local units more than offsetting a fall in loans taken by domestic financial institutions, the traditional visitors to the offshore market.

Loan volumes totaled $3.86 billion across 12 deals in the first half, compared with $1.37 billion in eight transactions in the first half of last year.

Loans to Taiwanese and South Korean companies with manufacturing businesses in Vietnam accounted for 27.1 per cent of the total volume, compared with 11.4 per cent last year.

Among the major deals, Taiwanese plastics-products maker Formosa Plastics obtained two separate loans totaling $750 million for the capital expenditure of its subsidiaries Formosa Ha Tinh Steel and Formosa Industries, while South Korean steelmaker POSCO borrowed $298 million via POSCO SS Vina for refinancing.

Loans taken by domestic financial institutions fell 20.4 per cent year-on-year to $370 million in the first half from $465 million in the first half of last year. VPBank Finance, the consumer-lending arm of the Vietnam Prosperity Joint Stock Commercial Bank (VPBank), closed a $215 million 364-day facility during the first half; the largest in the sector year-to-date. Earlier this month, VPBank printed its maiden $300 million, 6.25 per cent due-2022 high-yield bonds.

Part of the Acuris family, Debtwire provides high value news, data, and analysis on debt markets worldwide. It is the only intelligence service that reports and researches on debt situations before they break in the market. Its solutions span real-time news, in-depth credit analysis, data, covenant research, and specialist coverage of structured finance and municipal bond markets.

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