SHS – the bridge for cross-border securities deals
SHS – the bridge for cross-border securities deals
As a leading securities brokerage in Vietnam, Saigon-Hanoi Securities JSC (SHS) has big abilities in investment banking and securities brokerage, with a wide range of customers that offer great potential for business co-operation across borders.
One of the milestone deals that SHS helped carry out at the end of 2018 was with Asia Commercial Bank (ACB). SHS was the advisor and underwriter for ACB when the bank issued VND2.2 trillion ($95.65 million) of bonds, in a deal that can meet the strictest requirements of investors. These 10-year ACB bonds were also highly liquid, as investors are free to trade them on the market, with attractive interest rates for both investors and issuers.
ACB bonds also offer strong safety measures. In case of wrongdoing, government bonds will be used as collaterals, and a reputable third party will step in as the asset manager, protecting investors’ rights and ensuring a smooth transition process.
A great number of institutional investors, with a steady amount of capital and a strict investment appetite, have registered for the ACB bond sale. In the end, the transaction was successful and all bonds were sold to international investors. This success has provided ACB with mid- to long-term capital for growth, helping to meet its credit expansion and operational efficiency targets. With the new funding, ACB can also meet the capital adequacy ratio set by Basel II standards, as well as the State Bank of Vietnam’s cap on using short-term funds for mid- to long-term lending.
The deal also marks SHS’s success in launching a local bond product that can counter-weight corporate bonds guaranteed by well-known global institutions, which enjoy high ratings in Vietnam’s primary bond market.
This milestone deal is an important step for SHS in its drive to diversify its investment banking capabilities, pushing its ability in deal underwriting and advising. The deal has cemented SHS’s position in the market as a capable middleman for cross-border transactions, connecting high-quality issuers with professional investors.
There are a number of other recent deals that SHS was proud to be a part of. For example, the brokerage helped SHB Financials with a bond issuance worth VND1.5 trillion ($65.2 million) – VND900 billion ($39.13 million) of which was already issued in the second quarter of 2019. The remainder is expected to be launched this quarter.
Other examples include Vietnam Posts and Telecommunications Group’s (VNPT) sale of Post & Telecommunications Finance to SeABank, and PYN Elite Fund purchasing shares of Pha Le Plastics Manufacturing and Technology JSC – both advised by SHS’ investment banking team. SHS has also helped various state-owned enterprises (SOEs) conduct initial public offerings (IPO), such as Civil Engineering Construction Corporation 1 (Cienco 1), Cienco 4, Thang Long JSC, Lilama JSC, VEAM Corporation, and VNPT. Over the years, many major SOEs or leading private companies with strong fundamentals, good market share, and positive brand image, have chosen to partner up with SHS. Thanks to these achievements, SHS has been honoured with multiple awards, such as top brokerage in terms of IPO and SOE divestments in 2014-2015, top IPO advisor in the 2016-2017 period, top mergers and acquisitions advisor in 2017-2018, and top brokerage in various years awarded by the State Securities Commission, and the Vietnam M&A Forum. With a wide range of services, SHS is a trusted partner for companies to raise capital, restructure finances, or expand business.
SHS’ CEO Vu Duc Tien said that their core business is brokerage, and they consistently rank among the top 10 securities firms in the segment. SHS now sets sights on becoming a top advisor in investment banking.
