VPBank Senior Loan (IFC-38038)

Countries
  • Vietnam
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
Bank Risk Rating
FI
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Jun 13, 2016
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
VIETNAM PROSPERITY JOINT STOCK COMMERCIAL BANK
The holder of the loan, grant, or other investment.
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, etc.
Investment Amount (USD)
$ 50.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. 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, converted to USD$. 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, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Jan 31, 2019

Disclosed by Bank Apr 13, 2016


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Project 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
  • International Finance Corporation (IFC)

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%).

Private Actors

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

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/