IFC considers $150 million investment in OCB
IFC considers $150 million investment in OCB
International Finance Corporation (IFC), a member of the World Bank Group, is considering investment of up to $150 million in Vietnam-based OCB.
According to IFC’s disclosure on February 28, the proposed investment consists of a possible five-year senior loan from IFC’s own account of up to $150 million to OCB.
The proceeds will be used to expand the bank’s lending to eligible climate and social sustainability projects and support the growth of OCB’s sustainability portfolio.
The proposed investment will provide the bank with medium- and long-term funding to finance climate and social sustainability projects.
Meanwhile, by providing the financing, IFC will support the bank to grow its lending to eligible sustainability projects and to diversify its sustainability finance portfolio by expanding into financing new sustainability asset classes.
Last year, OCB secured a substantial loan of $100 million from IFC to bolster the bank's lending portfolio specifically for small- and medium-sized enterprises. The agreement is set to span over a five-year term.
Established in 1996, OCB is headquartered in Ho Chi Minh City and is listed on the Ho Chi Minh Stock Exchange. The bank provides a wide range of commercial banking products and services to both retail and commercial clients through a nationwide network of 149 branches and transaction offices as of October 2023.
As of the same date, OCB’s major shareholder is Aozora Bank, which holds 15 per cent of the bank since June 2020.
Active in Vietnam for more than 20 years, IFC has been a key partner in the country’s development journey, and that of its private sector, providing billions of dollars to local businesses to grow and create jobs since its first in-country investment. Sustainability and climate are a priority for IFC in Vietnam, as the institution has committed over $900 million in long-term finance to support climate-related projects in the country.
According to the State Bank of Vietnam, 43 credit institutions granted green credit in 2023. However, green credit growth is far from the target of 10 per cent of total outstanding debt by the end of 2025.
