SHB receives $120 million loan from IFC

SHB and the International Financial Organization (IFC) signed the first loan in a $120 million loan package from IFC’s three-year direct source on March 21st.

The loan is intended to support Saigon-Hanoi Bank (SHB) in developing its portfolio of small and medium-sized enterprises (SMEs), women-owned enterprises and supply chain enterprises. In addition, IFC will promote an additional loan package to mobilize from international lenders.

With this loan, SHB commits a minimum of 37.5% of its value to lending to women-owned. The bank will also receive $226,000 in funding from the We-Fi Fund and the Women Entrepreneurship Opportunity Fund (WEOF) – global funding initiatives aimed at increasing access to capital for women entrepreneurs.

In addition, 16.7% of the loan value will be funded for SMEs involved in supply chains. At the same time, IFC also advises the bank to boost supply chain financing, thereby generating leverage and leverage, providing financial solutions that create smoothness, cost savings and enhance supply chain efficiency.

Ms. Ngo Thu Ha – General Director of SHB (right) and Ms. Natalia Bogomolova – Business Manager of IFC Asia Pacific Financial Institutions Division (left) signed the cooperation agreement. Photo: SHB

At the signing ceremony, Ms. Ngō Thu Ha – Director General of SHB said that the IFC and international financial institutions accompanying SHB contributed to affirming the bank’s capabilities in the international financial markets, as well as its development strategy for stable, sustainable growth, meeting international standards. In the past, the bank has also implemented several support programmes, supporting SMEs, especially women-owned enterprises – groups of enterprises that are making a positive contribution to economic growth.

“If there are timely policies and support solutions, especially in favourable capital flows such as from IFC, this group of enterprises will grow even stronger, expand production and business activities, towards sustainable development,” she added.

In addition to this partnership, IFC is also expected to provide a $75 million guarantee of commercial financing to SHB under the Global Trade Financing Programme. (GTFP). Joining the GTFP will help the bank to expand its global network of partners, while contributing to trade growth and supporting export and import activities for domestic.

Also at the event, Mr. Thomas Jacobs, National Director of IFC in Vietnam, Cambodia and Laos believed that the partnership between the two sides would help SHB to strengthen its business in line with its development strategy, help small and medium-sized enterprises to grow thanks to borrowing capital as well as linkage to global supply chains, thus contributing to economic growth and job creation in Vietnam.

“It is important that small and medium-sized enterprises, especially women-owned, have access to the capital they need to grow and expand their,” said Thomas Jacobs.

In the process of cooperation, IFC and its partners will support and advise SHB in developing its development and business strategy, contributing to enhancing its management and risk management capabilities in accordance with international standards.

As a result, the bank will have more resources and advantages to seize opportunities, connect supply and demand more effectively, as well as long-term plans to continue sustainable and efficient growth.

As of December 31, 2022, the bank’s total assets amounted to more than VND 551,000 billion, its own capital according to Basel II reached VND 62,577 billion, the total mobilization reached over VND 407,000 billion and the balance on customer loans reached Rs. 385,000 billion. Total net income from business activity in 2022 reached more than VND 19.350 billion. Pre-tax profits reached more than VND 9,658 billion, an increase of 54% over the same period. SHB’s capital security and risk management indicators are at a better level than the regulations of the State Bank and international standard practice.

SHB is moving towards the number one banking target for efficiency and technology in commercial banks in Vietnam by 2027. With a vision of 2035, SHB becomes the top-of-the-line retail bank in the region.

IFC is a member of the World Bank Group – a global development organization that focuses on supporting the private sector in emerging markets, operating in more than 100 countries, using its capital, expertise and influence to create markets and opportunities in developing countries. In the 2022 fiscal year, IFC has committed $32.8 billion to private enterprises and financial institutions in developing countries to promote common prosperity.

Following: VN Express