10:00 (GMT +7) - Wednesday 23/09/2020

Banking & Finance

ADB provides guarantees to support trade finance

Released at: 16:04, 24/05/2017

ADB provides guarantees to support trade finance

Source: ADB

Bank's Trade Finance Program to work with two local lenders in providing guarantees.

by Doanh Doanh

The Asian Development Bank (ADB)’s Trade Finance Program (TFP) and two Vietnamese banks - the An Binh Joint Stock Bank (ABBank) and the Tien Phong Commercial Joint Stock Bank (TPBank) - have signed agreements enabling the program to provide guarantees of up to $50 million annually to support trade finance in Vietnam.

“Trade and trade finance are critical to the global and regional economy, in particular to small and medium-sized enterprises and job creation,” said Mr. Steven Beck, ADB’s Head of Trade Finance. “Our Trade Finance Program aims to help Vietnam and Vietnamese businesses expand trade opportunities, increase competitiveness, and promote trade-led inclusive growth.”

According to Mr. Cu Anh Tuan, CEO of ABBank, the cooperation with the TFP will not only bring about higher business efficiency but also create an opportunity for the bank to affirm its brand in the banking and finance market. “The signing with the TFP marks the start of a close relationship between ADB and ABBank in developing our banking services,” he said. “We hope for ADB’s continued trust and support to further promote trade development between Vietnam and other countries.”

ABBank is one of the leading commercial joint stock banks in Vietnam and among the Top 10 largest commercial banks in terms of charter capital. Its charter capital now exceeds VND5.319 trillion ($234 million) and it has an extensive network of 164 transaction offices in 34 cities and provinces nationwide.

“The guarantee from ADB will be used to support Vietnamese small and medium-sized enterprises to optimize their businesses so they can contribute to Vietnam’s economic growth,” said Mr. Nguyen Hung, CEO of TPBank.

TPBank is one of the most dynamic commercial banks in the country, with total assets of around VND106 trillion ($4.6 billion), some 4,000 employees, and an extensive network of 55 branches and transaction offices.

The TFP has supported $8.2 billion in trade through 5,814 transactions covering both guarantees and direct funding in Vietnam. Of its total transactions in Vietnam, 67 per cent are related to small and medium-sized enterprises. The TFP is currently working with eleven commercial banks in Vietnam and, with this new signing, this rises to 13 commercial banks.

Backed by ADB’s AAA credit rating, the TFP provides guarantees and loans to over 200 partner banks to support trade, enabling more companies throughout Asia to engage in import and export activities. With dedicated trade finance specialists and a 24-hour response time, the program has established itself as a key partner in the international trade community, providing fast, reliable, and responsive support to fill gaps in the region’s most challenging markets.

User comment (0)

Send comment