An Binh Commercial Joint Stock Bank
- Active: Active
- Region: Asia & Pacific
- Country: Vietnam
- Sector: Banking
- Year: 2017
- Domicile: Vietnam
- Instrument: Loan
- Commitment (MNOK) as of 30.06.2019: 170.4
- Original Commitment (MNOK): 163.2
Expanding lending to smaller businesses and women-owned SMEs in Vietnam
Norfund’s loan to AB Bank will contribute to increased access to capital for underserved MSMEs in Vietnam. 30% of the loan will be dedicated to female entrepreneurs. The loan will also promote long-term lending in the sector and help to improve the AB Bank’s balance sheet structure.
In Vietnam, limited access to capital is a major barrier for new companies to grow. As Vietnam’s economic growth continues, long-term funding for SMEs will become even more critical. While SMEs account for more than 98 percent of the country’s businesses and 50 percent of employment, only 30 percent of the registered SMEs has access to formal financial services. Further, a new IFC study finds that it is even more difficult for women-owned SMEs to obtain bank loans, with an estimated credit gap of $1.2 billion per annum.
Shareholders of AB Bank include IFC (10%); May Bank (20%, the largest banking group in Malaysia); Geleximco (20%, a large Vietnamese conglomerate); and institutional and individual investors (50%).