IFC proposes $200m investment in Vietnamese bank

IFC’s investment will help VIB expand its portfolio of loans to small and medium-sized enterprises (SME) and micro SMEs, along with its affordable housing financing, according to a disclosure. The commitment will consist of a senior loan with a 5-year tenor, to be followed by another loan either from IFC or arranged by the group with participation by other lenders.

VIB was founded in 1996 and was one of the first private banks in Vietnam. The institution manages 160 branches and transaction offices across the country, providing financial services and lending to both corporate and retail clients. Its largest single shareholder is the Commonwealth Bank of Australia, with a 20% stake.

According to the bank’s most recent annual report, its loan book stood at VND59.2 trillion ($2.6 billion) as of December 2016, up from VND47 trillion the year before. Over the same period revenue grew from VND2.96 trillion to VND3.4 trillion, while net profit grew from VND521 billion to VND562 billion.

IFC is an active investor in Vietnam, both directly in Vietnamese companies and as an LP in funds that support its development goals. The VIB investment follows a similar commitment to Vietnam Prosperity Commercial Joint Stock Bank earlier this year, in which the group approved a financing facility of $57 million to grow the bank’s SME lending portfolio.

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• Topics
• Southeast Asia
• Financials
• Expansion
• Vietnam
• Financial Services
• IFC