Vietnam International Bank (VIB) raises $260m in international syndicated loans

HANOI, March 21 (Vietnam News/ANN): Vietnam International Bank (VIB) has raised $260 million in international syndicated loans from the Asian Development Bank (ADB), United Overseas Bank Limited (UOB) and nine Asian financial institutions.

The financing includes a direct AfDB loan of $100 million and a syndicated loan of $160 million arranged by the AfDB and United Overseas Bank Limited (UOB) with nine banks based in mainland China, Thailand, Taiwan, in India, Cambodia and Singapore.

The syndicated loan agreement is expected to improve access to finance for small and medium-sized enterprises (SMEs), sole proprietorships and promote equity financing for quality housing for individuals in Vietnam, VIB said in a statement.

According to the agreement, VIB is also cooperating with AfDB to implement the Technical Assistance (TA) Program for Women Entrepreneurs with a budget of USD 500,000 from the Women Entrepreneurs Financial Initiative Fund (WE-FI ). This is the first TA grant provided in Vietnam that exclusively supports a bank to promote female entrepreneurship.

“The agreement confirms our existing partnership with the AfDB and the parties’ efforts to promote financial access to individuals and SMEs,” said VIB CEO Han Ngoc Vu.

“This is a very timely action, especially in the context where SMEs are in high demand for capital to restore and develop production and activities after the Covid-19 pandemic, as well as to contribute to the improvement of the living conditions of individual customers”, Vu mentioned.

The AfDB’s Managing Director for Private Sector Operations, Suzanne Gaboury, underscored the vital role of banks in addressing issues of access to finance for SMEs and household borrowers, to ensure an inclusive and sustainable development pathway. sustainable for Vietnam.

She added that this agreement is part of the project to strengthen Việt Nam’s banking sector and facilitate access to finance for individuals and SMEs.

The successful mobilization of foreign capital contributes to asserting the notoriety of the VIB brand on the international financial market.

In Vietnam in particular, VIB has always led the industry with a solid and efficient foundation for business, operations, digital transformation and risk management, successfully transformed into a retail banking model with a ratio nearly 90% of the loan portfolio, twice the industry average.

Over the five years from 2017 to 2021, VIB’s pre-tax profit grew 11 times; capital and total assets both increased three times. Since 2018, VIB has consistently been at the top of the industry and has significantly exceeded the industry average in operational efficiency, with return on equity (ROE) in 2021 reaching 31%, or 1 .7 times the industry average at age 18. percent.

After more than a year of listing on the Ho Chí Minh City Stock Exchange, VIB stock is highly appreciated for its positive growth rate.

As of December 31, 2021, VIB’s market capitalization reached over US$3.2 billion, ranking among the top five by market capitalization among joint-stock commercial banks. – Vietnam News/ANN

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