The transaction represents the second largest VND bond ever issued by a Joint-Stock Bank in Vietnam and is the largest bank bond issued in 2009. The transaction marks Sacombank's maiden debt issue.
ANZ, Citibank and Sacombank Securities were joint-lead managers and bookrunners for the deal which was split into two tranches - a two-year VND100 billion 10.45 per cent fixed rate bond and a VND1,900 billion floating rate note priced a spread of 275 basis points over the 12-month average deposit rate of the big four Vietnamese state-owned banks.
As a debut issue, the transaction will play an important role in enabling Sacombank to raise senior funding from the local bond market and to establish a credible and transparent local bond pricing reference point in the VND bond market.
The deal closed with an oversubscribed orderbook which enabled the issuer to double the size of the issue from VND1 trillion to VND2 trillion.
Healthy demand from a range of investors such as local banks, asset managers and finance companies, contributed to the diversified distribution of the trade and enabled Sacombank to expand its investor base.