VIB inks a new loan agreement with IFC, bringing total credit limit to $450 million

Thursday, Jun 15, 2023 17:22

Head of Treasury of VIB Le Quang Trung and IFC Regional Director for Financial Institutions Group Allen Forlemu, Asia and Pacific at the loan agreement signing ceremony. — Photo courtesy of VIB

The International Commercial Joint Stock Bank (VIB) and International Finance Corporation (IFC) has signed a loan agreement to strengthen VIB’s financial resources for credit extension activities with retail home loan, home renovation products, and promote affordable home loans business.

With the new five-year unsecured loan, VIB's total credit limit with IFC has reached US$450 million, including two loans valued at $250 million and a $200 million trade line.

In the context of the capital market being heavily influenced by global economic and political fluctuations, VIB continues to have agreements signed with IFC. That affirms and strengthens our long-term and sustainable cooperation relationship, a representative of VIB said.

In addition, the successful capital mobilisation amid the current economic context also helps VIB strengthen financial resources for credit granting activities to individual customers for home loans and home repairs, boosting credit demand that has slowed down in the real estate market since the beginning of the year, the representative said.

As per the agreement, VIB will increase its lending to retail customers, who want to purchase or renovate their homes. Within the scope of the agreement, VIB commits to spend at least $30 million to support mortgage business with a loan value below $55,600. This shows VIB’s adherence to the Government objectives to ease the real estate sector and promote the disbursement of support packages by Circular 33/NQ-CP.

Earlier in October 2022, VIB also completed the withdrawal of a $150 million loan from IFC with similar terms to support individuals accessing home loans.

VIB and IFC established a business relationship in 2011 when participating in IFC’s Global Trade Finance Programme (GTFP) as an issuing bank.

Through more than 10 years of cooperation and growth, VIB is the bank that has provided the largest limit among eight Vietnamese banks currently joining GTFP. It is also one of the most active banks which has won six awards from IFC.

In February 2022, VIB was awarded “Fastest Growing Bank Partner in East Asia and the Pacific”. Recently in May 2023, IFC also increased the VIB's trade finance limit to $200 million, making VIB the bank with the GTFP largest trade finance limit in Viet Nam. — VNS

Comments (0)