Saigon Asset Management and VietinBank Capital Join Forces to Establish a Distressed Assets Fund Press Release

SAM 26th July, 2011

(Ho Chi Minh City, Vietnam)- Saigon Asset Management (SAM), the investment manager of the listed investment funds Vietnam Equity Holding (VEH) and Vietnam Property Holding (VPH), announced the official signing of a Cooperation Agreement with VietinBank Capital (VIBC).

SAM, along with VIBC, will establish and raise capital for a Vietnam-focused Distressed Assets Fund with a proposed total size of US$150 million. To take advantage of the current credit crunch situation in Vietnam, the fund targets companies that have distressed real estate assets as the collateral for non-performing loans, thus helping banks restructure their distressed loans.

To combat rapidly growing inflation, the State Bank of Vietnam has increased interest rates resulting in lending rates exceeding 20%p.a. These high rates are hampering companies’ ability to receive new or refinance old loans.

According to SAM’s CEO, Louis Nguyen, his firm and VIBC “will look for companies with strong fundamentals, but that have encountered problems due to the current credit crunch.”

VietinBank Capital’s General Director, Nguyen Anh Tuan, reiterated that “a large number of companies with non-performing loans are solid companies with real estate projects that got caught up in the credit crunch.”

Until inflation is brought under control, the high interest rates will be difficult to manage for many companies and projects, resulting in a continued pipeline of attractive deals, a principal reason for the strategic partnership between SAM and VietinBank Capital. 

About Saigon Asset Management

Established in 2007, SAM is the investment manager of Vietnam Equity Holding (VEH) and Vietnam Property Holding (VPH). Both funds are listed and traded on the Frankfurt Stock Exchange and Xetra. VEH invests in listed, pre-listed, and private companies, capitalizing on the strong growth of the Vietnamese middle class. VPH invests in real estate projects and companies, concentrating in middle-end residential and retail projects. VEH was ranked as the top performing Vietnam focused equity fund in 2008 and VPH was the top performing Vietnam focused property fund in 2009. 

For more information on SAM, please visit www.saigonam.com .

About VietinBank Capital

VietinBank Capital is a subsidiary wholly owned by VietinBank, the second largest listed bank in Vietnam. VietinBank Capital’s operations focus on investment banking services to maximize profitability and improve the risk management capacity of the parent bank. Currently, VietinBank Capital has the largest charter capital of all fund management companies in Vietnam with VND 500 billion.

For more information on VietinBank Capital, please visit www.vietinbank.vn.