TTC AgriS has become a preferred destination for leading financial institutions in the region. Within just one month, TTC AgriS has successfully attracted foreign investments, raising up to $140 million USD from prominent international financial institutions such as IFC, SMBC, and most recently, FCB Bank and a group of other major financial institutions.
On July 20, 2023, Thanh Thanh Cong - Bien Hoa Joint Stock Company (TTC AgriS, HOSE: SBT) officially signed a loan agreement of up to $100 million USD with a consortium of 9 financial institutions from Taiwan. First Commercial Bank (FCB), the third-largest bank in Taiwan, will act as the Lead Bank in arranging and managing the loan facility. Notably, this loan is unsecured.
The purpose of raising $100 million USD this time is to supplement the working capital for TTC AgriS within one year. As the lead arranger and manager for this loan, FCB stated that the lenders expect to continuously refinance TTC AgriS for a period of 3 years.
First Commercial Bank (FCB), established in 1899, is a well-established bank and one of the top banks in Taiwan. As of December 31, 2022, FCB's total assets reached $7.516 billion USD. Currently, FCB has 188 domestic branches and a presence in 42 countries worldwide through its global network.
Amidst the current macroeconomic uncertainties such as high inflation rates, economic recessions in major countries, and political conflicts, TTC AgriS's successful raising of nearly $100 million USD from leading financial institutions like FCB demonstrates the confidence these major financial organizations have in the company's strong business foundation and its reputable credit profile.
TTC Group, TTC AgriS, and FCB, together with a group of leading financial institutions in the Asian region, gathered for the signing ceremony of a $100 million USD loan.
Consistently attracting significant capital from top international financial institutions.
On June 16, 2023, TTC AgriS successfully completed the final phase of the commercial funding agreement with the International Finance Corporation (IFC) and Sumitomo Mitsui Banking Corporation (SMBC).
According to the agreement, IFC and SMBC will jointly provide commercial funding to TTC AgriS, totaling $40 million USD in working capital. The entire amount raised from this deal will be utilized by TTC AgriS to support its business operations, enhance production capabilities, and expand market reach, in line with the company's cooperation strategy with professional investors and its development plans.
TTC AgriS is the first company in Vietnam to receive long-term cooperation interest and priority from IFC under the Global Warehouse Finance Program (GWFP). This source of funding is also expected to encourage local banks to participate in the agricultural value chain, optimizing the potential financing opportunities in this high-potential sector.
As a multinational agricultural enterprise, TTC AgriS has demonstrated its competitive advantage by successfully establishing strategic relationships with leading financial institutions in the region, creating a common playground for financial institutions and credit organizations to participate in the sustainable agricultural value chain and generate value while promoting investment in the cyclical development of the economy.
As of June 30, 2023, the ownership ratio of foreign shareholders in TTC AgriS has continuously shown strong growth, reaching approximately 16%, a 42% increase compared to the same period in 2022.
At the same time, reputable domestic and international ETFs have also shown interest by continuously increasing their investments in SBT shares. The Vietnamese stock market currently has 7 ETFs with assets over $100 million USD, including Fubon FTSE Vietnam ETF, DCVFM VNDiamond ETF, iShares MSCI Frontier and Select EM ETF, VNM ETF, DCVFM VN30 ETF, FTSE Vietnam ETF, and SSIAM VNFinLead ETF. Among these 7 ETFs, 3 hold SBT shares, with Fubon FTSE Vietnam ETF holding approximately 19 million shares, Vaneck Vietnam ETF holding around 9 million shares, and iShares MSCI Frontier and Select EM ETF holding around 3 million shares.
As of June 30, 2023, the total number of SBT shares held by these ETFs exceeds 35 million, a 154% increase compared to the same period in 2022. Particularly, Fubon FTSE Vietnam ETF has continuously increased its ownership percentage of SBT, specifically rising from around 4 million to around 19 million shares, an increase of over 390% compared to the same period in 2021, and from around 6 million to around 19 million shares, a surge of over 230% compared to the same period in 2022.
Source: TTC AgriS
Efforts to maintain efficient business operations have led to TTC AgriS's sustainable development in a volatile environment.
Recently, Mirae Asset Securities Joint Stock Company released a stock analysis report on SBT shares and issued a buy recommendation with a 12-month target price of 19,250 Vietnamese dong, representing a 23.4% increase. According to Mirae Asset, TTC AgriS achieved favorable results at the end of the first three quarters of the 2023 fiscal year, with net revenue reaching 18 trillion VND, a 40% increase compared to the same period last year, and successfully meeting 100% of its annual plan. The company also reported a post-tax profit of 533 billion dong. The current declining interest rate environment is expected to support TTC AgriS. As a result, Mirae Asset projects that in 2023, SBT will achieve its best business performance since going public, with revenue reaching 25 trillion dong and post-tax profit at approximately 950 billion dong.
In 2023, positioning itself as a comprehensive agricultural solutions provider, TTC AgriS officially transformed its business and management model from pure agricultural production to an integrated smart agricultural economy - market-oriented, product-focused, and promoting agricultural economic thinking over traditional production mindset. Notably, the TTC AgriS Innovation Day 2023 event held on June 16, 2023, marked a significant milestone in this transformation journey.
Vice Chairwoman of the Board of Directors of TTC AgriS - Mrs. Dang Huynh Uc My delivered the opening speech at the TTC AgriS Innovation Day 2023, emphasizing the focus on sustainable agricultural development.
The event marks the beginning of a new chapter in the comprehensive journey of sustainable nutritional value chain, creating a common platform for the convergence of science, technology, and agricultural economics. By maximizing R&D activities, TTC AgriS positions itself as a high-value agricultural products manufacturer, integrating consumer commerce while harmonizing the interests of all stakeholders and protecting the surrounding environment.
