SHB Finance issues certificates of deposit worth millions
In this article (5)
SHB Finance has issued its fourth tranche certificates of deposits worth a total of VND300 billion ($12.88 million). These were 12-month deposits with an annual interest rate of 10.3 percent and no transfer fees.
The SHBank Finance Company Limited (SHB Finance) issued the certificates of deposits for its fourth tranche as part of its book-building process. This issuance attracted prestigious institutional investors, including one domestic investment fund and one securities company.
On April 25, SHB Finance had successfully issued its third tranche certificates of deposit with the same interest rate.
Explaining the factors that make SHB Finance’s certificates of deposits attractive to investors, CEO Dinh Quang Huy said that although the company was a new player in the consumer finance market (official launch in August 2018), it has gained the attention of many institutional investors, thanks to its efficient and speedy operating system.
“We always try to be transparent to investors at all time, not just when we need to raise funds. Therefore, our certificates of deposits are always welcomed by investors, even though timing of tranches are quite close,” Dinh said.
The company announced positive business results in the first four months of 2019, very soon after it commenced operations. SHB Finance ended April 2019 with outstanding loans of VND1.44 trillion ($61.84 million), up 103 percent compared to 2018, fulfilling 39 percent of the plan for 2019. With the fourth tranche, SHB Finance has successfully raised VND900 billion ($38.65 million), VND810 billion from certificates of deposit and VND90 billion from deposits. The funds will help SHB Finance serve immediate consumer finance demands of low to medium income customers across the country, contribute to the development of a healthy consumer finance market and eliminate rampant shadow banking activities.
Its profit before tax as of April 2019 had reached VND71.6 billion ($3.08 million).
The company has served over 150,000 customers.
Questions & Answers
Q.What was the total value of the fourth tranche of certificates of deposit issued by SHB Finance?
What was the total value of the fourth tranche of certificates of deposit issued by SHB Finance?
The fourth tranche of certificates of deposit was worth a total of VND300 billion, which equates to $12.88 million.
Q.Which types of institutional investors bought these certificates of deposit?
Which types of institutional investors bought these certificates of deposit?
This issuance attracted one domestic investment fund and one securities company, both considered prestigious institutional investors.
Q.What was SHB Finance's profit before tax as of April 2019?
What was SHB Finance's profit before tax as of April 2019?
As of April 2019, SHB Finance had a profit before tax of VND71.6 billion, which is equivalent to $3.08 million.
Q.How much has SHB Finance raised in total from all its tranches so far?
How much has SHB Finance raised in total from all its tranches so far?
With the fourth tranche, SHB Finance has successfully raised a total of VND900 billion, comprising VND810 billion from certificates of deposit and VND90 billion from other deposits.