On March 21, 2023, in Hanoi, Saigon – Hanoi Bank (SHB) and the International Finance Corporation (IFC) held a loan agreement Signing Ceremony between SHB and IFC with a loan package worth 120 million USD.

The two parties signed the first tranche in a 3-year senior loan package of 120 million USD on IFC’s own account. In addition, IFC, a member of the World Bank Group will continue to promote an additional loan package mobilized from international lenders.

The loan would aim to assist SHB with expanding its small and medium-sized enterprise (SME) loan portfolio, which includes women-owned businesses and those involved in the supply chain. SHB commits to set aside a minimum of 37.5% of the loan on- lending to women-owned businesses, and the bank will receive a grant of $226,000 from the Financial Initiatives Fund for Women Entrepreneurs. (We-Fi) and the Women Entrepreneurs Opportunity Fund (WEOF) – global funding initiatives with the purpose of enhancing access to funding for women entrepreneurs.

At the same time, 16.7% of the loan will be exclusively targeted for SMEs involved in supply chains. In addition to loan, IFC also advises SHB of promoting supply chain financing with specialized solutions and products, providing financial solutions to help creating seamless, cost-effective and efficient supply chain.

Ms. Ngô Thu Hà – General Director of SHB and Ms. Natalia Bogomolova- Regional Industry Manager for FIG in for FIG in Asia Pacific

At the Signing Ceremony, Ms. Ngo Thu Ha – General Director of SHB shared: “ That  IFC and many international financial institutions have accompanied SHB in recent years has both affirmed SHB’s reputation and capacity in  international financial market  and proved the Bank’s strategy of building a solid foundation and strong capital buffer toward stable and sustainable growth in compliance with comprehensive international standards .Over the past time, SHB has implemented many programs to accompany and support SMEs, especially women-owned enterprises – a group of businesses that are increasingly actively contributing to economic development. We believe that, if there are timely support and suitable solutions, especially in terms of low interest rate loan such as  from IFC, this group of enterprises will  utilize their strengths to expand production and business activities  towards sustainable development.”

IFC is also expected to provide a trade finance guarantee up to USD 75 million to SHB under IFC’s Global Trade Finance Program (GTFP). Joining GTFP will help SHB expand its global network of partner banks, and at the same time contribute to promoting trade growth and import and export activities of domestic enterprises.

That IFC and many international financial institutions have accompanied SHB in recent years has both affirmed SHB’s reputation and capacity in international financial market and proved the Bank’s business development strategy

Also at the event, Mr. Thomas Jacobs, IFC’s Country Director for Vietnam, Cambodia and Laos said: “The new cooperation between the two sides will help SHB consolidate its business activities in line with its strategy, boost SMEs’ businesses growth loans via this loan package and fully link with global supply chains, thereby contributing to economic growth and job creation in Vietnam”

“It is important that SMEs, especially women-owned ones, be supported and able to access the fund they need to grow and expand their businesses.” Mr. Thomas Jacobs emphasized.

Moreover, IFC and other partners in the program shall provide advisory support for SHB in designing business strategy, improving corporate governance, and risk management in compliance with international standards

With the above added values, SHB will possess more resources and advantages to effectively match capital supply and demand as well as implement other long-term sustainable and efficient business growth plan.