IFC grants $40m loan to Vietnam’s SeABank to expand SME lending
It’s the first phase of a $150m package for expanding SME lending, reducing greenhouse gas emissions.
The International Finance Corporation (IFC) has provided a $40m loan to Vietnam’s Southeast Asia Commercial Joint Stock Bank (SeABank), the first phase of an up to $150m financing package.
In a press release IFC said that the funding package is aimed at helping SeABank expand lending to SMEs, especially women-owned businesses, and to increase access to climate finance.
The package will comprise up to $80m from IFC's own account and $50m to be mobilized from international lenders, in addition to a $20m trade finance line.
At least $20m has also been earmarked for women-owned SMEs (WSME), with support from the Women Entrepreneurs Finance Initiative (We-Fi). The IFC's funding will reportedly help SeA Bank triple its current WSME lending, with the goal that it will account for about 25% of its total SME portfolio by 2024.
IFC will advise SeABank to establish a women's banking strategy in order to enable women-owned SMEs close a $4.9b financing gap in Vietnam. This gap reportedly accounts for more than 20% of the total financial shortfall of SMEs in Vietnam, according to IFC.
In addition, IFC is helping SeABank to support Vietnam to reduce greenhouse gas emissions with $30m to be allocated for climate-friendly projects. IFC's support is also expected to help SeABank build a $60m climate-finance portfolio by 2024.
To decrease greenhouse gas emissions, the bank will support more green buildings and resource-efficient initiatives.