IFC helps boost finance for Viet Nam’s SMEs
VGP - International Finance Corporation (IFC), a member of the World Bank Group, has invested a US$75 million convertible loan in SeABank to help Vietnamese small and medium-sized enterprises (SMEs) access funding.
Accordingly, IFC will have an option to convert its loan to common shares of SeABank within 5 years.
IFC's investment is aimed at impulsing SeABanks's development strategies and increasing access to finance for SMEs and women-owned SMEs.
Specifically, in line with IFC's approach to addressing climate risks, SeABank will also commit to not funding new coal-related activities.
This will help contribute to Viet Nam's climate targets including phasing out coal-fueled power generation by 2040 and achieving net zero carbon emissions by 2050.
Earlier, in 2021, IFC and five international investment funds including Banque Internationale de Commerce-BRED, BlueOrchard Microfinance Fund, KASIKORNBANK PCL, OPEC Fund for International Development, and ResponsAbility Investments AG provided a financial package of US$220 million to SeABank.
The investment aims to provide financial assistance to SMEs, especially women-owned businesses and expanding climate finance.
Since establishing office in Viet Nam in 1997, IFC has helped expand access to finance, improved infrastructure to provide better public services and supported the manufacturing and services sectors to create more jobs.
