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| IFC and TPBank sign s US$10 billion trade finance facility. — VNS Photo |
HA NOI (Biz Hub) — IFC will provide trade finance of up to US$10 million to TienPhong Commercial Joint Stock Bank (TPBank) to enhance its support for local enterprises and boost international trade opportunities.
IFC or the International Finance Corporation is a member of the World Bank Group.
The facility, which is part of IFC's Global Trade Finance Programme (GTFP), will provide TPBank risk coverage in granting trade finance to local companies, and access to a global network to help the growth of its trade finance business. The network helps promote transactions in challenging markets, boost competitive financing and build correspondent bank relationships with new institutions at low risk.
"This trade line helps to extend our capacity to meet the trade finance demand from small and medium-sized enterprises (SMEs), one of our main target client groups," Nguyen Hung, TPBank's chief executive officer, said at a ceremony held in Ha Noi yesterday for the signing of the agreement with IFC. "Being part of IFC's GTFP will help us get recognised by a wider range of correspondent banks globally, and make it easier for us and our clients to complete international transactions.
"As IFC is very thorough in partner banks' appraisal and selection, IFC's GTFP line is a ‘stamp of approval' of TP Bank's management efforts in improving the bank's operations towards international standards," Hung said.
"IFC's trade finance support to TPBank will enable the country's small and medium-sized enterprises sector to increase its share in global trade," Kyle Kelhofer, IFC country manager for Viet Nam, Cambodia and Lao PDR, said. "Expanding trade flows is essential for SME growth and will help boost the economy, generate foreign exchange and create jobs. This investment is also a testament of IFC's continued commitment to support the strengthening of Viet Nam's banking sector.
Since the introduction of IFC's GTFP programme in Viet Nam in 2007, more than 950 guarantees have been issued by participating banks to support $4.2 billion worth of trade finance, making Viet Nam one of IFC's top trade finance markets. IFC is the largest global development institution focused on the private sector in emerging markets. Working with more than 2,000 businesses worldwide, it uses its capital, expertise and influence to create opportunity where it is needed most.
In financial year of 2015, IFC's long-term investments in developing countries rose to nearly $18 billion, helping the private sector play an essential role in the global effort to end extreme poverty and boost shared prosperity.
TPBank says it has striven to become Viet Nam's leading digital bank, and is continuously improving its products and services through developments in banking technology. — VNS