Shinhan Financial Group is expanding its collaboration with Vietnam's largest private enterprise, Vingroup, from automotive finance to capital markets.
On September 17, Shinhan Financial announced that it met with Vingroup executives at its headquarters in Ho Chi Minh City to discuss ways to broaden their cooperation into capital markets and other areas.
Shinhan Financial has been increasing its automotive finance transactions, particularly with Vingroup's electric vehicle manufacturer, VinFast. Starting in 2024, Shinhan Vietnam Bank plans to offer a total of $100 million in auto loans to VinFast customers, while Shinhan Vietnam Finance provided financing for approximately 14,000 motorcycles worth 15 billion won in the first half of this year.
Building on this foundation, both parties agreed to extend their collaboration into the capital markets sector. Shinhan Investment Corp. Vietnam will seek business opportunities related to Vingroup's capital and bond procurement, while Shinhan Vietnam Bank and Shinhan Vietnam Finance plan to expand automotive finance in line with the demand for VinFast electric vehicles.
Shinhan Investment Corp. Vietnam will serve as the sole financial advisor for Vingroup's first Arirang bond (won-denominated bond) issuance, aiming for a launch in the fourth quarter while identifying demand from domestic institutional investors. Shinhan Investment Corp. will also participate as a co-underwriter for the domestic bond issuance, planning a direct investment of 40 billion won.
Jin Ok-dong, Chairman of Shinhan Financial, stated, "Based on our accumulated transaction experience with Vingroup, we will expand our collaboration into various areas, including capital markets, to create new business opportunities."
* This article has been translated by AI.
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