SSI receives a US $ 55 million mortgage loan from a foreign bank

(Hanoi, March 21, 2019), SSI Securities Corporation (HOSE: SSI) and a group of foreign financial institutions, headed by SinoPac Bank (Taiwan), signed a mortgage loan worth 55 million USD - equivalent to over USD 1,270 billion. The loan will help SSI diversify its financial structure and balance its credit lines with optimal costs. This is also the first time a Vietnamese securities company has been granted such large-scale credit in this form.

SSI Securities Corporation (HOSE: SSI)

SSI is the first securities company in Vietnam to approach the mortgage limit with such a large committed loan balance, thereby showing that the credit rating of SSI for foreign financial institutions is very high.

With a charter capital of more than VND 5,100 billion, total assets of more than VND 23,825 billion, of which, equity accounted for 38% of the total capital, equivalent to more than VND 9,155 billion, the expansion of foreign loan limits will help SSI Securities Corporation has more capacity to provide investors with financial products with low interest rates, competitive in the market.

Reportedly, the mortgage loan of 55 million USD for SSI by SinoPac Bank (Taiwan) is the focal point for arranging with 6 foreign financial institutions. Accordingly, SinoPac appreciated SSI's solid progress over the years, business results grew rapidly over the years, continuously holding the Number 1 position in the market share of both HOSE and HNX ... At the same time, SinoPac also acknowledges SSI's contribution to the overall development of the Vietnamese stock market since its establishment, the prestige and position of the company in the market. At SSI, there is always a consistency of vision as well as strategy, transparency in business activities as well as internal culture based on many years of development. Those are also the basic reasons for after 2 years of cooperation, SinoPac decided to improve the relationship between the two sides by a mortgage agreement worth 55 million USD.

The principal amount will be used for short-term investments with high safety or disbursed in proprietary trading, margin lending ... from time to time.

SinoPac's representative also added that SinoPac has provided loans to many securities companies, especially in Hong Kong and Taiwan, however, in Vietnam, SSI is the first case that SinoPac granted used in this form. In fact, in Vietnam, many domestic enterprises have access to foreign loans, including collaterals and unsecured loans, however, most of them are large corporations in the production fields, or key projects or borrowing organizations are credit and financial institutions. SSI is the first securities company in Vietnam market to have access to the unsecured credit limit with such a large committed debt balance, which shows that the credit rating of SSI for foreign financial institutions is very high.

Unlike the domestic credit evaluation method, foreign institutions take a lot of time, many preparation steps, legal procedures ... to be able to conduct credit relations. The most important criterion is that the Customer must be a large enterprise and have a healthy financial potential.  The figure of USD 55 million - equivalent to over VND 1,270 billion - was also decided based on SSI's post-disbursement plan and loan cost, in order to optimize the capital efficiency with the agreement of SinoPac after assessing the capacity. Therefore, the representative of SSI, Ms. Nguyen Vu Thuy Huong - Head of Treasury Division, SSI Securities Joint Stock Company said: "Apart from the efficiency factor due to the low cost of the loan, the consideration of opening limits with foreign partners is also the direction that SSI wishes to expand to affirm the position of SSI in both domestic and foreign."

Speaking more about the meaning of the loan, the representative of SinoPac said that by becoming a arrange focal point to six foreign financial institutions, SinoPac hopes to be a long-term partner with SSI in the future, especially side along with SSI to reach the goal of expanding to the region and the world. Besides, SinoPac also wants to have more access to potential customers through this deal, thereby deepening its integration into Vietnam's capital market.

trong bối cảnh chính sách về tín dụng đối với ngành nghề kinh doanh chứng khoán trong vài năm trở lại đây tương đối chặt chẽ.

Unsecured loan is a form of lending without collaterals, based entirely on prestige and repayment capacity. Unsecured loans or secured loans are only effective if the borrower uses the loan for the right purpose and does business effectively, thus contributing to the promotion of Vietnam's economic growth. For many years, SSI has always emphasized the expansion of capital business activities through the diversification of domestic and foreign partners. In the coming time, SSI will continue to maintain this strategy in order to optimize loans and help balance and harmonize domestic credit limits, in the context of credit policies for the securities business industry has been relatively tight in recent years.

Information about SinoPac Bank

Owned by SinoPac Holdings, SinoPac Bank was established by the merger of SinoPac Bank and International Bank of Taipei on November 13, 2006.

SinoPac Bank has been doing business in Vietnam since 2004 through Far East National Bank (U.S.A) - a subsidiary of SinoPac. By 2015, SinoPac officially established a branch in Vietnam with the name SinoPac Bank - Ho Chi Minh City Branch. SinoPac Bank mainly provides corporate banking services in Vietnam, with target customers being the leading enterprises of Vietnam's economic sectors and FDI enterprises.

About SSI Securities Corporation (HOSE: SSI)

SSI Securities Corporation (SSI - HOSE) - established in December 1999 - is one of the pioneer companies at Vietnam stock market. Over 18 years of operation, SSI has become the largest financial institution in the market with a chartered capital of VND 5,100 billion, operating in major financial services including Retail Securities Services, Institutional Securities Services, Asset Management, Investment Banking, and Treasury. In 2018, SSI lie within the list of private and listed securities companies with Top highest scale of capitalization, total assets, profit as well as profitability of ROE in ASEAN region.

On December 18, 2018, the company officially changed its name from "Saigon Securities Incorporation" to the new name "SSI Securities Corporation" - unifying the company name with the abbreviation and stock code issued in the market. This is considered a necessary change, helping investors, especially foreign investors, easily identify the company's brand, in the context that SSI is one of the 40 most valuable brands in Vietnam, valued at USD 30.8 million. On the other hand, showing a professional image, aiming for further and greater development of the company in the future, not only in Vietnam market but also in the region as well as around the world.