World Bank purchases An Binh Bank bonds

The International Finance Corporation,the private sector arm of the World Bank, has invested 40.5 million USDin Vietnam's An Binh Bank.

It has bought convertible bonds worth 480 billion VND (24 million USD) and regular bonds worth 312 billion VND.

"IFC's investment in the current unfavourable market conditionsprovides much needed long-term capital for An Binh Bank to pursue itsportfolio growth and implement its capital increase plan in 2013," VuVan Tien, the bank's chairman, said.

"The investmentreinforces the capital position of An Binh Bank and supports the bank'sefforts to strengthen its products and services with a focus on lendingto small and mid-sized enterprises."

The IFC will also advise the bank on issues like corporate governance and energy-efficiency financing.

An agreement signed by the two sides last June envisages helping thebank design and implement a strategy to develop into a specialised bankserving small and mid-sized firms, which remain under-served inVietnam .

"This investment demonstrates our commitment tothe development of Vietnam's banking sector," Karin Finkelston, theIFC's director for East Asia and the Pacific, said.

In 2008 Malaysia's Maybank picked up a 15 percent stake in An Binh Bank and then increased it to 20 percent in 2009.

Last December it bought convertible bonds worth 120 billion VND (6million USD) and regular bonds worth 78 billion VND to maintain its 20percent stake in An Binh Bank./.