The Netherlands’ development bank FMO has arranged a first of its kind long-term US$150mn syndicated facility for Vietnam’s Sacombank.
The 10-year facility will be used to boost the development of Vietnam’s capital market and small and medium-sized enterprise sector.
FMO syndicated the loan out to four other European development banks, including Norway’s Norfund, Germany’s DEG, France’s Proparco and BIO of Belgium.
The interest rate is fixed for the first five years, and a second tranche worth US$55mn and involving up to four lenders is expected to be closed in Q3 2011.
This is the first-ever subordinated loan to a commercial bank in Vietnam, with long-tenor and with the exclusive involvement of development banks.
“Sacombank is committed to the effective execution of this capital. This is a genuine landmark transaction in Vietnam, and especially for Sacombank,” says Tran Xuan Huy, chief executive officer of Sacombank.