Saigon – Hanoi Commercial JS Bank (SHB) and the International Finance Corporation (IFC) signed an agreement for SHB to participate in the Global Trade Finance Program (GTFP) of IFC .

According to the agreement, SHB participates in GTFP as the issuing bank with an initial trade finance guarantee limit granted by IFC of up to 75 million USD.

GTFP is a factoring program for banks from developing countries. GTFP provides full or partial guarantees to help banks deal with risks associated with trade settlement processes in emerging markets. Guarantees are issued for all private sector commercial transactions that meet IFC criteria.

Participating in GTFP will help SHB expand its global partner banking network, while contributing to promoting trade growth and supporting import-export activities of domestic businesses.

At the Signing Ceremony, Ms. Ngo Thu Ha – SHB’s CEO shared: ” SHB has been implementing many programs to accompany and support businesses, especially import-export enterprises, small and medium enterprises (SME), and women-led businesses, directing credit flows to green projects, bringing positive impacts to the environment and society. We welcome meaningful programs like GTFP to help businesses proactively deal with liquidity difficulties as well as risk mitigation. At the same time, the program will also help the bank significantly increase trade finance for many import-export companies, especially during a period when economies around the world face many fluctuations”.

Also at the event, Mr. Thomas Jacobs, IFC Country Director for Vietnam, Cambodia and Laos said: “Trade is a growth engine that creates better jobs, reduces poverty, and increases economic opportunity. IFC’s $75-million trade finance facility will enhance SHB’s capacity to deliver trade finance solutions to serve local businesses, especially SMEs, and help them withstand the impacts of ongoing crises, boosting trade and easing liquidity constraints”.

Previously, in March 2023, SHB and IFC signed a credit agreement for a loan worth 40 million USD – the first tranche of a total expected loan package of 120 million USD from IFC’ with a tenor of 3 years. The loan is intended to support SHB in developing a small and medium-sized enterprise (SME) loan portfolio, including women-led businesses and businesses participating in the supply chain. During the cooperation process, IFC along with partners in the program have been supporting and advising SHB in developing business strategies, contributing to improving management and operating capacity, risk management according to international standards.

With the above synergistic values, SHB will have more resources and advantages to seize opportunities, connect funding supply and demand more effectively, as well as for long-term plans to continue sustainable growth. At the same time, it brings customers many effective financial solutions.

The fact that IFC and many international financial institutions have accompanied SHB in recent times continues to affirm SHB’s reputation and capacity in the international financial market, as well as the Bank’s solid, safe, and effective development strategy, building a solid foundation and buffer to help SHB grow stably and sustainably, fully and comprehensively meet safety standards, and comply with international standards.