Vietnam's SHB raises S$229m with CGIF-backed Singapore dollar social bonds
The dual-tranche offering by Saigon-Hanoi Commercial Joint Stock Bank (SHB) is the first Singapore dollar bond from a Vietnamese issuer, funding local small and medium enterprises.
SHB Secures Singapore Dollar Funding
Saigon-Hanoi Commercial Joint Stock Bank (SHB) has successfully issued S$229 million ($179 million) in social bonds. The Credit Guarantee and Investment Facility (CGIF) provided a guarantee for the issuance, facilitating SHB's entry into Singapore's institutional bond market.
This move allows the Vietnamese lender to tap into a new pool of capital, diversifying its funding sources beyond its domestic market.
First Vietnamese Issuer in SGD Market
This dual-tranche bond issuance marks a significant milestone as the inaugural Singapore dollar-denominated bond from a Vietnamese entity. The transaction opens a new pathway for other Vietnamese issuers seeking to access the Singapore market, potentially broadening investment opportunities for institutional investors in the region.
The structure of the offering, including its social bond designation, aligns with growing investor interest in sustainable finance instruments.
Support for Vietnamese MSMEs
The capital raised through these social bonds is earmarked to support lending to local Micro, Small, and Medium-sized Enterprises (MSMEs) in Vietnam. This targeted financing aims to bolster the growth and development of these crucial businesses, which form the backbone of the Vietnamese economy.
Access to new foreign currency funding can help SHB expand its credit facilities to MSMEs, potentially lowering borrowing costs and stimulating economic activity.
This article is journalism, not investment advice; consult a licensed professional before making financial decisions. Market data is indicative, may be delayed, and should be verified with your broker or exchange before use.
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