Nam A Bank receives $60 million loan from FMO

Nam A Bank receives $60 million loan from FMO

Nam A Bank has completed a green and inclusive lending facility agreement to receive a $60 million loan from Dutch development bank FMO.

Representatives of Nam A Bank and FMO sign the financing agreement. Photo courtesy of Nam A Bank

Announced on September 25, the five-year, unsecured facility will see Nam A Bank prioritise funding for green ventures while expanding lending to micro, small, and medium-sized enterprises (MSMEs).

The loan supports key sectors including agriculture, agricultural value chains, and rural development, as well as farming households and businesses owned by women or young entrepreneurs.

The agreement enables customer groups with considerable demands – yet limited financial means – to access capital at reasonable costs. At the same time, it will help businesses realise their goals of reducing emissions, addressing climate change, and transitioning to sustainable production models. Prioritising support for women- and youth-led initiatives also fosters gender equality, lays the groundwork for comprehensive development, and spreads positive social values.

Vo Hoang Hai, deputy CEO of Nam A Bank. Photo courtesy of Nam A Bank

Vo Hoang Hai, deputy CEO of Nam A Bank, said, "The financing from FMO will be directed towards customer groups that still have considerable unmet financing needs, allowing the bank to expand its social impact alongside its green growth objectives. It is also the result of years of building credibility and reflects Nam A Bank's strategy of diversifying its international funding sources."

Frouke Hoekstra, director of Financial Institutions at FMO, said, "The partnership with Nam A Bank combines two key priorities of FMO, including advancing the green transition and expanding access to finance for underserved businesses. By providing long-term financing for green ventures, MSMEs, including women- and youth-owned businesses, we aim to support a more sustainable and inclusive private sector in Vietnam," she said.

Frouke Hoekstra, director of Financial Institutions at FMO. Photo courtesy of Nam A Bank

Hanna Pors, deputy consul general of the Netherlands in Ho Chi Minh City, said, “The bilateral cooperation between Vietnam and Netherlands is increasingly moving from experience sharing towards developing long-term solutions for sustainable development. Green finance is becoming one of the key drivers for realising this vision.”

She highly appreciated Nam A Bank’s strategic direction of strengthening connections with the international financial community and progressively enhancing its capabilities to meet the increasingly rigorous demands of sustainable finance and the rapidly changing domestic economy.

“The agreement marks a milestone in the partnership between the parties while establishing a platform for channelling capital, knowledge, networks, and international expertise into concrete development opportunities in Vietnam. Hopefully, the cooperation among the parties continue expanding over the long term and generating greater value, helping turn sustainability goals from strategic-level commitments into tangible, impactful outcomes that can create broader positive effects across Vietnam’s economy,” she noted.

On September 22, the Embassy of the Netherlands in Vietnam and FMO held a high-level forum focused on environmental, social, and governance (ESG) risk management for bank leaders. The event convened senior executives from FMO's partner banks to share best practices on incorporating ESG into board-level decisions, reinforcing the sustainable development direction of both parties ahead of the financing agreement.

The partnership with FMO marks the next step in Nam A Bank's ongoing strategy to expand its inflow of international green capital. On September 9, Nam A Bank also signed a $30 million credit agreement with Proparco, the development finance institution of the French Development Agency. The bank continues to affirm its position as one of the leading financial institutions in Vietnam in securing international green capital.

In recent years, Nam A Bank has expanded its green credit portfolio and integrated an Environmental and Social Management System into its lending operations. International financing has supported longer-term funding for renewable energy, high-tech agriculture, and SMEs, underscoring confidence among international financial institutions in the bank's financial strength and commitment to sustainable development.

FMO is the Dutch entrepreneurial development bank. As an impact investor, it supports sustainable private sector growth in developing countries and emerging markets by investing in ambitious projects and entrepreneurs. FMO believes a strong private sector drives economic and social development, with more than 55 years of experience helping entrepreneurs make local economies more inclusive, productive, resilient, and sustainable.

FMO focuses on three sectors with high development impact: agribusiness, food and water, energy, and financial institutions. With a committed portfolio of over $18.2 billion spanning more than 85 countries, FMO is one of the larger bilateral private sector development banks globally.

VIR