On February 21, 2017, the Revolving Credit Agreement Signing Ceremony under the Trade Finance Program (TFP) between Asian Development Bank (ADB) and Saigon – Hanoi Bank (SHB) was organized at SHB’s Head-office. Under this Agreement, ADB guarantees to directly finance SHB for its trade finance transactions, increasing the total limit SHB may utilize under the Issuing Bank Agreement (IBA) and Revolving Credit Agreement (RCA) up to USD150 million for export-import transactions at one time.

Ms. Ngo Thu Ha (to the left) – Deputy General Director of SHB and Mr. Eric Sidgwick – Country Director, Vietnam Resident Mission of ADB process the signing ceremony

The cooperation between SHB and ADB under TFP was launched in March 2016 when ADB selected SHB as its Issuing Bank (IBA) with original credit line of USD25 million. During the past year, SHB has fully utilized the line issued by ADB, thus diversifying its products and services, especially trade finance products and actively supporting Vietnamese enterprises. In recognition of SHB’s endless efforts in this program, this year ADB has approved a new credit line under this RCA and increased the limit under the IBA. At present, the total limit that SHB can use under IBA and RCA to finance its export-import transactions at one time may reach USD150 million.

Trade is a critical activity for the national economic development. Therefore, the cooperation between the two banks in Global Trade Finance Program will motivate trade growth and support import/export activities of domestic enterprises. The increase of official trade finance limit in 2017 has affirmed ADB’s trust toward SHB and SHB’s prestige, financial ability as well as immense experience in trade finance.

Speaking at the ceremony, Ms. Ngo Thu Ha – Deputy General Director of SHB said: “SHB is honored to continue working with ADB in its Global Trade Finance Program. The approval of ADB for the significant increase of total limit to be used by SHB after nearly one year of cooperation has affirmed SHB’s position and prestige not only to domestic partners but also to foreign financial institutions. Based on this momentum, we commit to use the loan in the most effective manner to support Vietnamese enterprises, especially SMEs to drive economic growth and create more jobs.”

Also at the ceremony, Mr. Eric Sidgwick – ADB’s Country Director in Vietnam said: “We’re happy to work with SHB to support enterprises, including SMEs. The increase in trade finance means economic growth and more jobs to people.”

ADB’s Trade Finance Program (TFP) was launched in Vietnam since 2009. The Program has financed more than USD7.8 billion for over 5,200 finance transactions in Vietnam so far, the majority of which is spent on SMEs. ADB is cooperating with some large and reputable banks in Vietnam under this Program to support trade finance through guarantee or direct financing. To be eligible to ADB’s trade finance limit, banks must meet the criteria set forth by ADB, including: sound and effective operation, good risk management, transparent information, clear development orientation, strategic vision of leaders. SHB is one of the few banks that fully meet the above criteria.