OCB secures $55 million loan from DEG, bolstering support for SMEs
OCB secures $55 million loan from DEG, bolstering support for SMEs
The Orient Commercial Joint Stock Bank (OCB) has secured a $55 million loan from Germany's DEG, targeting support for SMEs, especially those led by women, to lift Vietnamese living standards.
Ho Chi Minh City-headquartered bank OCB on September 6 secured a five-year loan valued at $55 million from DEG, the German Development Finance Institution under the umbrella of the KfW Development Bank.
This funding will primarily assist OCB's small and medium-sized enterprises (SMEs) clientele. Notably, a minimum of half of the total will be earmarked for SMEs helmed by women, underscoring an ongoing effort to boost female participation in business activities. The broader aim is to enhance productivity and living standards for Vietnamese families.
DEG, with a nearly 50-year tenure, is a leading member of the European Development Finance Institutions. It boasts a presence in 19 nations and currently manages an investment portfolio valued at €8.6 billion, including financial partnerships with prestigious global private corporations. DEG has, to date, financed over 1,600 companies worldwide, totalling commitments valued around €11 billion.
The recent lending agreement with OCB occurs against a backdrop of global economic uncertainty, with heightened market volatility and recent banking disruptions in both the United States and Europe.
Foreign financial institutions like DEG, when sanctioning credit, stringently vet Vietnamese banks for operational quality, risk management, and commitment to transparent, safe, and efficient growth. Throughout the loan's tenure, the bank must also rigorously adhere to financial health metrics encompassing capital safety, asset quality, and liquidity. The loan is a testament to OCB's credibility and capacity.
"SMEs are central to OCB's clientele," an OCB executive representative said. "We have introduced a slew of measures, including reduced interest rates and tax incentives, to support them. The additional backing from DEG undoubtedly bolsters OCB's position, streamlining procedures for SMEs, especially those led by women, to access bank capital."
