IFC Lends US$140 Mln to VPBank, OCB to Support SMEs

9:53:57 AM | 8/9/2020

IFC, a member of the World Bank Group, is providing US$140 million in loans to Vietnam Prosperity Joint Stock Commercial Bank (VPBank) and Orient Commercial Joint Stock Bank (OCB) to help them support clients, especially small and medium enterprises (SMEs), which have been impacted by the Covid-19 pandemic. The aim of the additional financing is to help local businesses with disrupted cash flows sustain operations and maintain jobs.

The pandemic has severely impacted Vietnamese businesses including SMEs, a key driver of Vietnam’s economic growth over the past two decades. Guided by the State Bank of Vietnam, VPBank and OCB have taken various relief measures for their SME clients impacted by Covid-19.
As part of its Covid-19 fast-track financing support package, IFC is providing VPBank with $100 million and OCB with $40 million in one-year, renewable senior loans. The funding will provide VPBank and OCB, IFC’s existing clients, with additional liquidity to continue lending to businesses, as these banks are offering payment relief to their borrowers at the same time.
IFC is also partnering with international lenders including the Asian Infrastructure Investment Bank (AIIB) to mobilize an additional financing package to further expand VPBank’s lending capacity to local businesses impacted by the pandemic. AIIB will be co-financing up to US$100 million to support VPBank’s trade finance and working capital finance to Vietnamese enterprises, including SMEs, during the Covid-19 crisis.

Source: Vietnam Business Forum