The Standard Chartered Bank and the Vietnam National Coal - Mineral Industries Group (Vinacomin) have signed a memorandum of understanding (MoU) on cooperation in several fields of concerns. Accordingly, the MoU allows the two parties to cooperate in sectors that bring in mutual benefits such as currency management, fundraising, financing, financial products and training.
Standard Chartered Bank will provide package services of comprehensive currency management for Vinacomin in order to help the group and its subsidiaries in domestic and international payment services. The lender will also support Vinacomin in search for fundraising channels like issuing bonds and borrowing loans from other channels in the capital markets in order to raise sufficient capital for investment activities. Furthermore, the bank will provide Vinacomin with risk management and liquidity in order to balance the investment demands and to reduce risks and support Vinacomin in evaluating the financial risks and suggesting risk insurance.
Mr Bala Swaminathan, Director of Standard Chartered Bank’s Customer Relations in Southern Asia, emphasised: “With this cooperation, Vinacomin can access international trade and investment channels as well as capital sources and our services. This also proves our commitments to supporting local enterprises and contributing to the country's economic development process.”
Mr Tran Xuan Hoa, General Director of Vinacomin, said: “The Vietnam National Coal - Mineral Industries Group is very happy to witness nicer cooperation relations between Vinacomin and the Standard Chartered Bank. Vinacomin is one of top-tier State-owned enterprises bearing many important responsibilities and tasks, and we have to live through many challenges to complete. We hope to ride out those challenges with the Standard Chartered Bank and maintain close relationship in the coming time.”
Previously, on September 16, in Hanoi, the Standard Chartered Bank and the Vietnam National Coal - Mineral Industries Group signed a US$58 million syndicated term loan facility to finance Vinacomin’s capital expenditure requirements.
Of the sum, US$20 million is provided by the Standard Chartered Bank, another US$20 million by the Cathay United Bank, US$10 million by the Malayan Banking Berhad and US$8 million by the Bank of China.
With a loan tenor of seven years, the loan is widely recognised as an impressive achievement under current syndicated loan market conditions when most deals are being done with a tenor of less than five years.
Addressing the signing ceremony, Mr Ashok Sud, Chief Executive Officer of the Standard Chartered Bank in Vietnam, Laos and Cambodia, said that the 7-year loan arrangement showed that Vinacomin had gained prestige in the international financial market.
He also expressed his hope that the syndicated loan will pave a way for other syndicated loans for Vietnamese businesses in the future.
On this occasion, Vinacomin and the Standard Chartered Bank also signed a memorandum of understanding. Accordingly, the bank will help raise funds from the capital market to finance Vinacomin’s forthcoming investment in coal production, bauxite mining and power plants.
The lender will also provide Vinacomin with financial solutions covering risk and liquidity management, training and other areas of interests.
The Standard Chartered Bank, currently operating in more than 70 countries, made presence in Vietnam in 1904. Presently, the bank operates two branches in Hanoi and Ho Chi Minh City. Recently, SCB has recently been licensed to establish a wholly foreign-owned bank in Vietnam.
Huong Giang
Vietnamese
