VPBank Quasi-equity (IFC-39020)

Countries
  • Vietnam
Where the impacts of the investment may be experienced.
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
Mar 9, 2017
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)
$ 57.00 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)
$ 57.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Aug 1, 2018

Disclosed by Bank Feb 7, 2017


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Project Description

According to IFC website, the proposed project consists of a financing facility of up to US$57 million to Vietnam Prosperity Commercial Join Stock Bank in order to support VPBank in raising long-term funds for its lending program to micro and small, medium enterprises.

The Project will facilitate increase access to finance in Vietnam, which remains one the most common constraints to business expansion, according to the 2015 World Bank Enterprise Survey. In particular, the Project is expected to support SMEs in the country getting adequate financing. This will allow them to better cope with the investment and capital requirement needs imposed by accelerated economic growth.

Investment Description
  • International Finance Corporation (IFC)

VPBank, 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 was ranked 6th in term of total assets among private joint stock commercial banks in Vietnam in 2015. VPBank’s shareholder structure consists of 3,470 individual investors, who own a shareholding of 41.2% in total, and 48 institutional local investors (58.8%).

The Project with VPBank involves a financing facility of up to US$57 million. The Project will be financed by IFC and potentially by IFC Financial Institutions Growth Fund and IFC Emerging Asia Fund, both managed by IFC Assets Management Company, LLC ("AMC").

Private Actors

VPBank, 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 was ranked 6th in term of total assets amongst private joint stock commercial banks in Vietnam in 2015. VPBank’s shareholder structure consists of 3,470 individual investors, who own a shareholding of 41.2% in total, and 48 institutional local investors (58.8%).

Contact Information

Vietnam Prosperity Joint Stock Commercial Bank
Contact: Mr. Nguyen Duc Vinh , Chief Executive Officer
Telephone No.: +84 4 73056600
Email Address: ducvinh@vpbank.com.vn
89 Lang Ha, Dong Da, Hanoi, Vietnam
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/