IFC credit package boosts SCF for Vietnamese SMEs

Thursday 28 March 2019 00:29 CET | News

The International Finance Corporation and Orient Commercial Bank have signed a deal on a USD 100 mln USD credit package to promote supply chain financing.

Under the agreement, IFC will provide a loan worth USD 100 million to the OCB with a term of three years, including USD 57.16 million from IFC’s own account and USD 42.84 million from the multi-investor Managed Co-Lending Portfolio Programme (MCPP) managed by IFC.

The IFC-led financing package, combined with advisory services, will boost lending to small- and medium-sized enterprises (SMEs), especially women-owned or managed, and will promote supply chain finance in Vietnam.

In addition to funding, in partnership with the Swiss State Secretariat for Economic Affairs, IFC will help OCB develop its supply chain finance business. While Vietnam is an export driven economy, few local banks offer a full range of supply-chain financial services to smaller businesses. With IFC’s support, OCB will develop a supply chain finance electronic platform to support the financing of commercial transactions.

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Keywords: The International Finance Corporation, IFC, Orient Commercial Bank, supply chain finance, lending, small and medium sized enterprises, SMEs, Co-Lending Portfolio Programme, Vietnam, Asia, APAC
Countries: World