IFC to Support VietinBank to Equitise

IFC, a member of the World Bank Group, and IFC Capitalization Fund just signed investment agreements to support equitisation plans of Vietnamese banks and expand financial access for small and medium enterprises.

 

The investment includes US$182 million for buying 10 % of stake at Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank), one of Vietnam’s leading banks. IFC and IFC Capitalization Fund will also provide VietinBank with a US$125 million credit that carries a term of 10 years and two months to finance small and medium enterprises.

 

IFC and IFC Capitalization Fund investments ensure long-term capital for the bank and show the success of Vietinbank as the first State-owned bank to sell shares to a strategic foreign investor. On October 10, 2010, IFC and VietinBank signed an advisory agreement designed to help the bank expand its small and medium enterprises’ loan portfolio, and thus support the backbone of the Vietnamese economy to spur economic growth and create jobs.