ABBANK has signed a senior loan agreement worth US$40 million with DEG and Norfund for on-lending to SMEs in Vietnam - particularly to women-run enterprises.
Hanoi 18.04.2018, Press release:
Lending to SMEs is a prioritized area in the development strategy of An Binh Commercial Joint Stock Bank (ABBANK). This US$40 million package will bolster ABBANK in its attempts to become a leading commercial bank in Vietnam in the retail field and strengthen their ability to help Vietnameese women-headed SMEs to grow.
DEG and Norfund are the German and the Norwegian development finance institutions. Their mandate is to contribute to the strengthening of the private sector in developing countries and thereby contribute to economic growth and job creation. They assess and approve credit under international standards, conduct comprehensive examination of partners in terms of corporate governance, business strategies, financial health, and commitment to the environment and society.
This financing package has indicated DEG’s and Norfund’s trust in the contribution of ABBANK to the development of the Vietnamese business community, especially SMEs"
Mr.Nguyen Manh Quan- acting general director of ABBANK
With 25 years’ experience in the financial-banking sector, ABBANK has proven itself to become a reputable bank with safe, effective operations and community activities. Taking credit from international institutions helps ABBANK to strengthen its financial capabilities, relations with partners and adopt know-how from lenders.
The deal signed with DEG and Norfund will not only open up cooperation opportunities for ABBANK, but also help the bank bolstering its reputation in the local financial market as well as approaching the international market. This deal also demonstrates the long-term commitments of international institutions in promoting the Vietnamese financial market.
Norfund appreciates this new partnership with ABBANK. Access to capital is often a major constraint for SMEs. Norfund invests in financial institutions, such as ABBANK, to strengthen their ability to supply capital and financial services to SMEs and thereby to contribute to growth and job creation.
Kjell Roland, CEO in Norfund
DEG is a subsidiary of German development bank KfW, one of the biggest credit institutions in Europe. Over the past 50 years, DEG has supported private enterprises in developing countries as well as in newly industrialized countries.
The Norwegian government-owned Norfund, known as the Norwegian Investment Fund for Developing Countries, has regional offices in Bangkok, Nairobi, Maputo, Accra and San Jose. With a portfolio of 2.4 billion USD, Norfund invests in three main sectors: financial institutions, clean energy and agribusiness, in addition to small and medium sized companies through third-party investment funds.