Fledging SHB Finance Co., Ltd. has successfully completed the issuance of the fourth tranche of certificates of deposits (CDs) with the total value of VND300 billion ($12.8 million) which was conducted through the book building process.

These CDs feature a 12-month tenor with an annual interest rate of 10.3 per cent and incur no transfer fees. The move attracted many prestigious institutional investors, including one domestic investment fund and one securities company.
Beforehand, on April 25,SHB Finance successfully issued the third tranche of CDs with the same interest rate.
Talking about why SHB Finance’s CD issuances are attractive to investors, CEO Dinh Quang Huy said, “Although being a new player in the consumer finance market only present officially since August 2018, SHB Finance has garnered attention from many institutional investors by virtue of our efficient and speedy operating system.”
“Especially, SHB Finance always tries to be transparent for investors at all times, not only when raising funds. Therefore, our CDs are always welcomed by investors, even as the timings of the tranches are quite close.”
By the end of the fourth tranche, SHB Finance has successfully raised a total of more than VND900 billion ($38.6 million), in which VND810 billion ($34.3 million) from CDs and VND90 billion ($4.3 million) from deposits.

The fund helps SHB Finance serveimmediate consumer finance demands from low to medium income customers across the country, contributing to shaping a healthy consumer finance market and gradually phasing out rampant “shadow banking” activities.
SHB Finance was established under License No.77/GP-NHNN dated December 12, 2016 by the State Bank of Vietnam and a business registration certificate dated March 28, 2017 issued by the Hanoi Department of Planning and Investment.
As of June 30, 2018, SHB Finance reported a charter capital of VND1 trillion ($42.9 million) owned by Hanoi-based commercial lender Saigon-Hanoi Commercial Joint Stock Bank (SHB).
SHB Finance is focused on providing cash lending services to mass consumer groups, including employees, workers, small households, and other customers who provide service bills.
In last July, the company launched the Southern Business Support Centre at 28-34 Pasteur in Ho Chi Minh City’s District 1.
After only a short time of operations, SHB Finance has announced upbeat business results in the first four months of 2019. Accordingly, the company ended April 2019 with outstanding loans balances touching VND1.440 trillion ($61.8 million), up 103 per cent compared to 2018, and equal to 39 per cent of the full-year plan. The company has posted VND71.6 billion ($3.08 million) in pre-tax profit in the first four months of 2019 and served more than 150,000 customers.