Bank inks deal with IFC, BNP Paribas
Bank inks deal with IFC, BNP Paribas
Orient Commercial Bank (OCB), the International Finance Corporation (IFC) and French banking giant yesterday signed an agreement for a credit facility of US$25 million in HCM City.
With this contract, OCB will be provided US$25 million, including $15 million from IFC (a member of the World Bank group) and $10 million from co-sponsor BNP Paribas (France), OCB's strategic partner.
The total amount will be reserved for SMEs, and OCB will set aside $5 million to serve SMEs owned or managed by women.
This programme will help to promote women's role in the development of the national economy in particular and society in general.
"This sponsorship of IFC and BNP Paribas, along with OCB's advantages, will help to boost business loans, facilitating SME access to funding. We will mainly focus on sectors such as manufacturing, import–export, trade, services and agriculture, giving priority to projects in environmental protection to minimise the effects of pollution and to ensure cleaner and greener operation environment for businesses and the community at large.
"We believe that, supported by the credibility and global experience of IFC and our strategic partner BNP Paribas, OCB will be a close companion of enterprises to overcome difficulties, and achieve stability and development," the OCB's CEO, Nguyen Dinh Tung, said.
Simon Andrews, regional Director of IFC (for Viet Nam, Cambodia, Laos and Thailand) said that they hoped that through this cooperation with OCB, "we can introduce a new loan product in international credit which other local banks can follow."
The co-operation between OCB and IFC was established in 2011 through the Global Trade Finance Programme, through which IFC has issued a trade guarantee up to $20 million, supporting OCB in managing trade finance risks while working with import–export businesses in Viet Nam.
The extension of another $25 million credit will increase the total credit to $45 million.
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