International Finance Corporation (IFC), a member of the World Bank Group, is considering extending a one-year, renewable senior loan of up to $150 million to Vietnam Prosperity Joint Stock Commercial Bank (VPBank), according to a disclosure.
The proposed financing package, which consists of up to $100 million IFC’s own account, and up to $50 million B1 Loan and parallel loan including a green-shoe option, aims to support the VPBank’s working capital and trade-related lending programme to enterprises including SMEs affected by the COVID-19 pandemic.
The project is expected to be supported by the Women Entrepreneurs Opportunity Facility, an initiative launched by IFC in partnership with the Goldman Sachs Foundation to help expand access to capital for women entrepreneurs in developing countries.
“The development impact of the proposed project is delivered through improved access to finance/liquidity to relevant stakeholders VPBank, and through them, their customers which will support their capacity to sustain operations and to expedite post-crisis recover; and promotion of the resilience of trade finance markets and broader stability in Vietnam,” the lender said in the disclosure.
Established in 1993, VPBank provides a wide range of commercial banking products and services to both retail and commercial clients through a nation-wide network.
The Hanoi-headquartered bank is now owned 14.96 per cent by Chairman Ngo Chi Dung and his related persons, Vice Chairman Lo Bang Giang and his related persons (7.5 per cent), and Vice Chairman Bui Hai Quan and his related persons (6.68 per cent).
The bank was listed in 2017 and has a diversified pool of more than 18,600 shareholders.
In January, IFC extended a $212.5-million financing package for VPBank to expand the latter’s lending to small and medium enterprises (SMEs) as well as financing for climate-related projects.
The international lender had earlier considered a proposal to extend a five-year, senior loan of up to $150 million to VPBank to grow its climate-related projects and SME portfolio.
Earlier in 2017, IFC had provided VPBank with a $57-million convertible loan, following a spate of other multimillion-dollar loans.