IFC partners with SeABank to lending SMEs in Vietnam

The two sides signed a loan agreement. (Photo courtesy of IFC)

Hanoi (VNS/VNA) - The International Finance Corporation (IFC) is providing a 40million USD loan to the Southeast Asia Commercial Joint Stock Bank(SeABank) to support local businesses and help them make a resilientrecovery after the COVID-19 pandemic, the member of the World Bank Group saidon June 28.

Thefirst phase of up to 150 million USD in financing, the funding package willhelp expand lending to small and medium enterprises (SMEs), especiallywomen-owned businesses, increase access to climate finance and boost internationaltrade opportunities.

Thepackage will comprise up to 80 million USD from IFC’s own account and 50million USD to be mobilised from international lenders, in addition to a 20million USD trade finance line. While the investment aims to increase SeABank’sSME lending portfolio, at least 20 million USD will be earmarked forwomen-owned SMEs, with support from the Women Entrepreneurs FinanceInitiative (We-Fi).

Witha strategy to expand its reach to women-owned and -led small and mediumenterprises (WSMEs), IFC’s funding will help the bank triple its current WSMElending, accounting for about 25 percent of its total SME portfolio by 2024,IFC said in the statement.

Climatefinance is a new area in Vietnam with a 753 billion USD climate investmentopportunity between 2016 and 2030 as the country aims to reduce greenhouse-gas(GHG) emissions by 9 percent by 2030 to mitigate climate change impact. IFC ishelping SeABank to support this country with 30 million USD to be allocated forclimate-friendly projects. Further, IFC’s support is expected to help SeABankbuild a 60 million USD climate-finance portfolio by 2024.

“IFC’slong-term financing and technical advice will enable SeABank to focus on twostrategic segments – WSMEs and climate financing – and position itself as abank of choice for women-owned businesses and climate-friendly projects overthe next five years,” said Le Thu Thuy, General Director of SeABank.

KyleKelhofer, IFC Country Manager for Vietnam, Cambodia, and Laos,said: “IFC’s new partnership with SeABank reaffirms IFC’s commitment tosupport the continued development of a strong financial sector in Vietnam.”

“Ourinvestment in SeABank reiterates our confidence in the bank and its strategicdirection to increase financing for SMEs and climate investments, furtheringgreen and inclusive growth, and helping Vietnam build back better after theCOVID-19 pandemic.”/.

VNA