ADB, SHB strike deal to provide trade loans in Vietnam
Hanoi (VNA) – The Asian
Development Bank (ADB) said it signed a Revolving Credit Agreement (RCA) with
the Saigon-Hanoi Commercial Joint Stock Bank (SHB) on February 21.
Under the agreement, ADB's
Trade Finance Program (TFP) will provide a 20 million USD direct loan to SHB to
support pre-shipment and post-shipment trade transactions.
The revolving credit facility
will enhance SHB's capacity in providing trade-related loans to its clients,
including for pre-export finance of agricultural products, garments, and
electronics for export to markets such as China, Japan, and Singapore.
'We are pleased to work with
SHB to increase support to companies, including small- and medium-sized
businesses. More support for trade means more economic growth and more job
creation,' said Eric Sidgwick, ADB Country Director for Vietnam.
SHB became a partner bank in
ADB's TFP in early 2016. In less than 12 months, TFP has supported a total of 25
SHB transactions worth over 160 million USD. The revolving credit facility is
TFP's second agreement with SHB.
SHB is one of the largest
commercial banks in Vietnam with total assets of more than 215 trillion VND,
about 7,000 employees, and an extensive network of nearly 500 outlets in
Vietnam, Laos, and Cambodia. SHB serves nearly 4 million individual customers
and businesses.
“Participating in TFP under
RCA helps diversify our trade finance products and services. We strongly
believe that the partnership with ADB in this programme will lead to more
future opportunities of cooperation between the two institutions,” said SHB CEO
Nguyen Van Le.
The TFP has been operating in
Vietnam since 2009 and currently works with 11 local partner banks. To date,
the programme has conducted 5,262 transactions, supporting 7.8 billion USD in
trade in Vietnam - mostly for small- and medium-sized enterprises.-VNA