The International Finance Corporation (IFC), member of the World Bank Group (WB), has approved the financial package of $125 million to help the Viet Nam Prosperity Bank (VPBank) expand its loans for the Small and Medium Enterprises (SMEs) and Micro Size Enterprises (MSEs), especially those owned by women.
IFC focuses on supporting the development of private sector at the developing country. This organization mainly focuses on supporting the SMEs and MSEs. These enterprises are the main parts of the national economy, which occupy 97.6% of the total enterprises working in Viet Nam as well as create the jobs for the majority of the people.
Mr. Kyle Kelhofer, the Country Director of IFC in Viet Nam, Cambodia and Laos, said that enhancing the lending capacity of VPBank shows a long-term commitment of IFC in promoting the development of Vietnamese financial market and joint-stock commercial banks. Expanding the chance to access finance and market is essential for the SMEs development, which helps to boost the economy, increase foreign exchange and create jobs.
This financial package will provide VPBank a syndicated loan worth up to $100 million, 5-year loan term and a trade fund worth of $25 million. The long-term loan will be put into 2 contracts; each contract is worth of $50 million. The 1st syndication contract was signed in 8th January 2016 with the IFC and Cathay United Bank (CUB) as the co-financers. The 2nd contract is expected to be signed at the beginning of the 4th quarter of 2016.
In 2016, the long-term loan for VPBank is the biggest loan for a Vietnamese bank from IFC. The $25 million trade fund limit is expected to be signed within August 2016.
Mr. Nguyen Duc Vinh, VPBank Director General said that the SME and MSE customers are one of the key targets in the Bank’s strategy towards becoming the leading retail bank in Viet Nam. The financial package funded by IFC will help VPBank accelerate the realization of this ambitious target, along with bring the superior and practical incentives for the customers.