DARP NPL WELCOME (IFC-48366)

Countries
  • Vietnam
Geographic location 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
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
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
Mar 31, 2024
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
WELCOME DTC CO. LTD.
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)
$ 30.00 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)
$ 30.00 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 Jun 24, 2024

Disclosed by Bank Jan 24, 2024

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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.

According to the bank's website, the project "entails an investment of up to US$30 million in form of a 5-year senior secured profit participation loan from IFC’s own account to a company to be established in Singapore by Welcome Creditline Corporation (“WCC”) and its affiliate Welcome Debt Trading Company Limited (“WDT” or the “Company”) to invest in nonperforming loan portfolios (NPL) portfolios in Viet Nam (the “Project”). The NPL investments will be managed by WDT with the objective to bring efficient NPL resolution and needed liquidity to the NPL market in Viet Nam".                                                   

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

According to the Project will consist of a senior secured profit participation loan of up to US$30 million for a tenor of up to 5 years from IFC’s own account to support WDT’s investment in secured and unsecured retail loan NPLs and secured SME NPLs in Viet Nam.

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.

According to the IFC, the NPL portfolios to be acquired in Viet Nam under the Project, will be managed by WDT. WDT was established in 2021 and is headquartered in Ho Chi Minh City. The Company had a paid-in capital of VND100 billion as of September 2023. WDT is financially and operationally supported by WCC, a Korean entity with relevant expertise and know-how in the field.

WCC was established on October 18, 2002, and is headquartered Hangang-daero, Yongsan-gu, Seoul, Republic of Korea. WCC’s main business activities are banking and debt trading services. WCC had total assets of US$6 billion and total equity of US$730 million as of the end of December 2022. WCC holds the shares of its subsidiaries, including Welcome Savings Bank, the fourth largest saving bank in Republic of Korea by asset size.


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.

WELCOME DEBT TRADING CO. LTD.
Moon Youngso
CEO
ysmoon@welcomevina.vn
City, Golden Building, 3rd floor, 473 Dien Bien Phu Street, Binh Thanh District, Hochiminh City, Viet Nam
https://welcomedtc.vn

 

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

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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