OPEC Fund grants $50 million to SeABank to boost small business and climate finance in Vietnam

OPEC Fund grants $50 million to SeABank to boost small business and climate finance in Vietnam

On July 13, ​​the OPEC Fund for International Development agreed a $50 million loan to Southeast Asia Commercial Joint Stock Bank (SeABank) to expand financing for small businesses and climate-focused investments across Vietnam.

The loan will help SeABank increase lending to micro, small and medium-sized enterprises, which account for around half of employment in Vietnam but continue to face a significant financing gap. Part of the OPEC Fund's funding will also support investments in energy efficiency, green buildings, rooftop solar and electric mobility.

OPEC Fund president Abdulhamid Alkhalifa said, "Small businesses are central to Vietnam's economy and an important source of jobs and growth. This financing will help more companies access the capital they need to invest and expand, while supporting practical climate solutions that can strengthen competitiveness and resilience."

The new loan agreement strengthens the partnership between SeABank and the OPEC Fund that began in 2022 with a first loan in support of local small- and medium-sized enterprises, including women-owned businesses, as well as climate projects.

Le Thu Thuy, SeABank's vice chairwoman of the Board of Directors, said, "This financing marks an important milestone in our partnership with the OPEC Fund, reinforcing SeABank's commitment to inclusive and sustainable growth. It also advances our role as a financial intermediary in mobilising and channelling international capital to support Vietnam's sustainable development priorities."

VIR