Investment Banks

Hoàng Nga & Trung Đức

 Overview
IB Overview IB in Vietnam Case studies

- Activities of investment - Structure - M&A

banks - Types - Capital raising
- Investment banks and - Private placement and
commercial banks Restructuring
 Activities of investment banks
1. Investment banking: underwrite and distribute new issues of debt and equity.
2. Venture capital: invest in new and high risk firms
3. Market making:
- Agency transactions: act as a stockholder for a fee or commission
- Principal transactions: seek to profit on the price movements of securities
4. Trading:
- Position trading
- Pure arbitrage
- Stock brokerage
5. Investing: manage funds for other investors or as principals for themselves
6. Mergers and acquisitions: find merger partners, underwrite new securities, assess the value of
target firm
7. Back offices and other service functions: research, advise on divestitures, asset sales
 Investment Bank vs Commercial Bank
Investment Banks Commercial Banks

- Assist companies in raising debts and
equity
- Provide advice on M&A, corporate
restructuring
- Securities trading
- Take deposits and make loan
- Earn profit from the difference between
lending interest and depositing interest
- Provide banking services: credit cards,
telephone banking, Internet banking,
ATMs,...
Vietnam Investment Banks - Structure
 Vietnam Investment Banks - Types

Securities firms Advisory firms Big 4 and others

 Case studies
M&A
- Thaibev acquired 53.59% in Sabeco
for $4.78 billion in 2017
- Advisors: BaoViet Securities, EY
Debt issuance
- Masan issued 3-year maturity bonds of
$430.9 million in 2020 (coupon rate of
9.3-10% in first year, and of floating
rate + 2.5% in remaining years)
- Advisor: Techcombank Securities
IPO
- Techcombank raised $922 million for
IPO in 2018
- Advisor: Morgan Stanley, Deutsche
Bank, VCSC
Others
- PNJ issued 9.8 million shares for
private placement in 2017 - Advisor:
VCSC
- Vissan for privatization, IPO &
Upcom in 2016 - Advisor: VCSC
- Hoang Anh Gia Lai, restructuring -
Advisor: advisory firms