ADB signs $100m deal with more Vietnamese banks

Wednesday, Mar 02, 2016 17:44

Representatives of ADB and SHB at the signing ceremony. ADB signed with HDBank and SHB an agreement to provide guarantees of up to US$100 million per year. — VNA/VNS Photo Tran Viet

HA NOI (Biz Hub) — Asian Development Bank (ADB), Ho Chi Minh City Development Bank (HDBank), and Sai Gon-Ha Noi Commercial Joint Stock Bank (SHB), signed mutually beneficial agreements on March 2.

These agreements enable the trade finance programme (TFP) to provide guarantees of up to US$100 million per year.

The beneficiaries are exporting and importing companies, including small and medium–sized enterprises in the country, Steven Beck, ADB's head of trade finance, said at the signing ceremony held in Ha Noi.

"The agreements will help increase economic growth and create jobs," Beck said.

HDBank Chairman Le Thi Bang Tam said joining the ADB's TFP programme was part of her bank's determined effort to improve its financial management capacity and service quality.

"This is a golden opportunity for HDBank to expand its business into the world market," Tam said.

TFP's loans and guarantees will be complemented by workshops and seminars to increase knowledge and expertise on trade finance, resulting in more support for export and import companies in Viet Nam.

Previously, ADB had signed onto the programme with nine other Vietnamese banks, including Military Joint Stock Bank, Việt Nam Export Import Commercial Joint Bank and Saigon Thuong Tin Commercial Joint Stock Bank.

ADB's TFP has been operating in Viet Nam since 2009. The programme has conducted more than 4,300 transactions and supported $6.5 billion in trade in the country.

Across Southeast Asia, the TFP has supported more than 6,000 small and medium-sized enterprises since 2009, through some 10,000 transactions valued at over $20 billion in sectors ranging from commodities and capital goods to medical supplies and consumer goods.

HDBank has more than 20 years of experience in the banking sector and has total assets worth more than VND100 trillion ($4.47 billion), with 220 offices nationwide.

SHB had total assets worth VND205 trillion as of December 31, with 7,000 employees in Viet Nam, Laos and Cambodia. —VNS

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