IFC and HDBank sign an MoU on May 11 in the US in the presence of visiting Prime Minister Pham Minh Chinh. (Photo: VNA) The signingtook place during the visit to the US by Prime Minister Pham Minh Chinh, who isleading a Vietnamese delegation to the US – ASEAN Special Summit in WashingtonD.C.
The tie-up isexpected to help HDBank build a supply chain finance (SCF) portfolio of 1billion USD in the next three years, thereby growing its SCF portfolio –currently active in sectors like construction materials, agribusiness, FMCG,supporting industries, and downstream petroleum distribution.
The IFC willhelp it design an SCF strategy for the agricultural sector, broaden its SCFproducts – especially supplier and distributor financing – and bring on boardanchor firms along with their suppliers and distributors, among others.
HDBank CEO PhamQuoc Thanh said: “SCF that links buyers, suppliers and financial institutionswill efficiently support trade cycles. IFC’s timely support will enable localbusinesses to leverage emerging trade opportunities and improve their linkagesto formal supply chains, contributing to Vietnam’s economic growth.”
Stephanie vonFriedeburg, IFC’s first Senior Vice President, Operations, said: “Small andmedium enterprises are the backbone of the economy and essential to Vietnam’sgoal of becoming a manufacturing hub in the region.
“IFC’s supportto domestic financial institutions such as HDBank will contribute to increasingSMEs’ linkages with global supply chains and open up opportunities fordevelopment and job creation.”
On April 14the IFC granted HDBank a trade finance limit of 40 million USD within theframework of the Global Trade Finance Programme to enhance its trade financepayment risk guarantee capacity, mainly for SMEs.
In 2021 itprovided a long-term loan of 70 million USD to HDBank to support renewableenergy businesses.
It also bought95 million USD worth of international convertible bonds issued by HDBank tosupport increased lending to micro, small and medium enterprises.
The totalvalue of commitments and cooperation between the IFC and HDBank has exceeded 200million USD and is expected to keep increasing./.
VNA
