VP Bank Senior Loan (IFC-38038)

Countries
  • Vietnam
Geographic location where the impacts of the investment may be experienced.
Specific Location
National-wide
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
FI
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Jun 13, 2016
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
VIETNAM PROSPERITY JOINT STOCK COMMERCIAL BANK
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 50.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 50.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 100.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Apr 4, 2021

Disclosed by Bank Apr 13, 2016

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

The Project is to provide:
(i) a senior loan that consists of up to US$50 million A loan as well as up to US$50 million B/ Parallel loan, and
(ii) a trade finance guarantee facility of up to US$50 million through IFC Global Trade Finance Program (“GTFP”) to Vietnam Prosperity Joint Stock Commercial Bank (“VP Bank” or the “Bank”).

Through the investment, IFC will support the Bank’s growth strategy to expand its reach to small and medium enterprise (“SME”) and micro SME (“MSME”) borrowers, particular women-owned SMEs (“WSMEs”), who play an important role within the economy and contribute towards job creation in Vietnam, as well as mortgage segment. The Project will be supported by IFC’s Women Entrepreneurs Opportunity Facility (“WEOF”).

The Project is expected to have considerable development impact by increasing access to finance for MSMEs and SMEs, particularly women entrepreneurs in Vietnam. That, in turn, will help increase opportunities for women entrepreneurs and improve livelihoods for a wide cross-section of society. It is also expected to improve access to credit in Vietnam as it will enable VP Bank to provide credit to underserved MSMEs and SMEs.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

VP Bank, previously known as Vietnam Joint Stock Commercial Bank for Private Enterprises, was set up in 1993. With a focus on retail and SME segments, the Bank has grown rapidly in recent years and ranked the 6th position in term of total assets amongst private joint stock commercial banks in Vietnam in 2015. VP Bank’s shareholder structure consists of 3,490 individual investors, who own a shareholding of 45.31% in total, and 49 institutional local investors (54.69%).

Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

Vietnam Prosperity Joint Stock Commercial Bank, previously known as Vietnam Joint Stock Commercial Bank for Private Enterprises, was set up in 1993. With a focus on retail and SME segments, the Bank has grown rapidly in recent years and ranked the 6th position in term of total assets amongst private joint stock commercial banks in Vietnam in 2015. VP Bank’s shareholder structure consists of 3,490 individual investors, who own a shareholding of 45.31% in total, and 49 institutional local investors (54.69%).


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Project Contact: Mr. Nguyen Duc Vinh, Chief Executive Officer
Vietnam Prosperity Joint Stock Commercial Bank
Office Address: 5th Floor, 72 Tran Hung Dao Street, Hoan Kiem District, Hanoi, Vietnam
Telephone No.: (844)-73056600
Fax No.: (844)- 3928 8904
Email Address: ducvinh@vpbank.com.vn
Website: http://www.vpbank.com.vn

ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/

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How it works