VIB receives $185-million IFC financial package
VIB receives $185-million IFC financial package
International Finance Corporation and its partners will offer $185 million of assistance to Vietnam International Bank.
The five-year financing package for VIB comprises of $100 million from IFC’s own account and $85 million from three international lenders: Cathay United Bank Co., Ltd., Industrial; Commercial Bank of China Ltd. (Hong Kong Branch), and Thailand’s Kiatnakin Bank Public Company Ltd.
The IFC-led loan aims to address two key development challenges in Vietnam: the financing gap faced by micro-, small-, and medium-d enterprises and the lack of affordable housing. IFC’s long-term funding commitment will enable VIB to double its SME and affordable housing portfolios over the next five years, boosting its lending to more than $1 billion in total.
“This syndicated facility marks a milestone for VIB, and other local privately-owned banks in Vietnam, to access long-term funding from foreign commercial lenders, allowing them to develop longer-term financial products, such as residential mortgage lending,” said Kyle Kelhofer, IFC country manager for Vietnam, Cambodia, and Lao PDR.
IFC is also a prominent advisor at VIB, helping the bank improve its SME banking practices. VIB joined IFC’s Global Trade Finance Programme in 2011 and the current trade line of $120 million has enabled the Vietnamese lender to increase its presence in the import and export sector.
Previously this year, IFC has approved a $57-million loan for VPBank, another leading commercial bank in Vietnam. The two-year loan, which can be converted to common shares, is also intended to help Vietnamese SMEs get the financing they need.
