This deal not only supports capital for VIB but also affirms the parties’ success in international capital market. (Photo courtesy of VIB)The funding comprises a direct ADB loan of 100 million USD and a syndicatedloan of 160 million USD arranged by ADB and United Overseas Bank Limited (UOB)from nine banks headquartered in mainland China, Thailand, Taiwan, India,Cambodia and Singapore.
The syndicated loan agreement is expected to enhance access to finance forsmall and medium-sized enterprises (SMEs), individual businesses and promotecapital financing for quality housing for individual customers in Vietnam, VIBsaid in a statement.
According to the agreement, VIB also cooperates with ADB to implement theTechnical Assistance (TA) programme for female entrepreneurs with a budget of 500,000USD from the Women Entrepreneurs Financial Initiative Fund (WE-FI). This is thefirst TA grant provided in Vietnam that exclusively helps a bank to promotewomen's entrepreneurship.
“The agreement affirms our existing partnership with ADB and the parties’efforts in promoting financial access for individual and SME clients,"said CEO of VIB Han Ngoc Vu.
"This is a very timely action, especially in the context that SMEs are ingreat demand for capital to restore and develop production and business afterthe COVID-19 pandemic, as well as contribute to the improvement of livingconditions for individual customers,” Vu said.
ADB Director General for Private Sector Operations Suzanne Gaboury emphasisedthe vital role of banks in addressing the issues of financial accessfor SMEs and individual household borrowers, to ensure an inclusive andsustainable development path for Vietnam.
She added this agreement is one item of the project to strengthen Vietnam'sbanking sector and help financing access become easier to individual customers and SMEs.
The successful mobilisation of foreign capital contributes to affirming VIB'sbrand reputation in the international financial market. Particularly in Vietnam,VIB has continuously led the industry thanks to a solid and effectivefoundation for business, operations, digital transformation and riskmanagement, successfully transformed into a retail banking model with a retaillending ratio of nearly 90 percent of the credit portfolio, twice theindustry average.
In the five years from 2017 to 2021, VIB's pre-tax profit increased 11times; capital and total assets both increased three times. Since 2018,VIB has continuously been on the top of the industry and far exceeded theindustry average in terms of operational efficiency with the return on equity(ROE) in 2021 reaching 31 percent, 1.7 times higher than the average of the industryat 18 percent.
After more than one year of listing on the Ho Chi Minh City StockExchange, VIB stock is highly appreciated for its positive growth rate. As ofDecember 31, 2021, VIB's market capitalisation reached more than 3.2 billionUSD, ranking in the top five in terms of market capitalisation amongjoint-stock commercial banks./.
VNA
