$10 million package for bank to support domestic enterprises and boost international trade.
The International Finance Corporation (IFC) granted a $10 million trade finance package to the TienPhong Commercial Joint Stock Bank (TPBank) on December 17 to assist it in supporting local enterprises and boosting international trade opportunities.
“The IFC’s trade grant will enable small and medium-sized enterprises (SMEs) to increase their share of global trade,” said Mr. Kyle Kelhofer, IFC Country Manager for Vietnam, Cambodia and Laos. “Expanding trade flows are essential for SME growth and will help boost the economy, generate foreign exchange, and create jobs. It is also testament to IFC’s continued commitment to support the strengthening of Vietnam’s banking sector.”
The package is part of the IFC’s Global Trade Finance Program (GTFP) and will help TPBank avoid risk in providing loans to domestic companies and give it access to global networks to promote its lending activities.
The networks help promote transactions in challenging markets, boost competitive financing, and build relationships between banks and new institutions.
“The trade line not only helps TPBank meet trade finance demand from SMEs, which is one of its target client groups, but also supports the bank’s shareholders and management in consolidating and expanding its business operations as well as serving more SMEs, households and individuals,” said Mr. Nguyen Hung, CEO of TPBank. “Furthermore, being a part of IFC’s GTFP will open up opportunities for TPBank to extend its relationship with a wider range of correspondent banks globally and make it easier for us and our clients to complete international transactions.”
The IFC has issued more than 950 guarantees in Vietnam, supporting $4.2 billion worth of trade finance, making the country one of its top trade finance markets.