The International Finance Corporation (IFC), a member of the US-based World Bank Group, and Cathay United Bank, a Taiwan-based commercial bank, recently announced that they will each lend USD 25 million to Vietnam Prosperity Joint Stock Commercial Bank (VPBank) to support small businesses in Vietnam. VPBank has agreed to allocate one fourth of the funds to women-owned small and medium-sized enterprises (SMEs), as a condition of funding sourced from the Women Entrepreneurs Opportunity Facility, which was launched in 2014 by the Goldman Sachs 10,000 Women Initiative and IFC. IFC and Goldman have made approximately USD 600 million in commitments to banks in 17 countries through the Women Entrepreneurs Opportunity Facility since its inception.
Additionally, IFC will provide VPBank with a “trade guarantee line” of USD 25 million from its Global Trade Finance Program (GTFP), through which IFC provides financing that allows banks to provide “partial or full guarantees of individual trade transactions.” In Vietnam, GTFP has participated in approximately 950 guarantees totaling USD 4.2 billion since its inception in 2007.
As of 2016, IFC has 184 member countries that drive its policies and approve disbursements, and it reports total assets of USD 90.4 billion. As of June 30, 2016, Goldman Sachs reports unaudited total assets of USD 439 billion. As of 2015, VPBank reports total assets of VND 194 billion (USD 8.7 billion), “deposits from customers & valuable papers issued” of VND 152 billion (USD 6.8 billion) and outstanding credit of VND 131 billion (USD 5.9 billion), including an SME loan portfolio of approximately USD 1 billion. As of the same year, it had approximately 2 million customers.
By Michelle Dold, Research Associate
About Vietnam Prosperity Joint Stock Commercial Bank (VPBank)
Founded in 1993, Vietnam Prosperity Joint Stock Commercial Bank offers credit, deposit, trade finance and international remittance services to individuals and organizations from its headquarters in Hanoi and 208 additional branches in Vietnam. As of 2015, it has approximately 13,000 employees, and it reports total assets of VND 194 billion (USD 8.7 billion), “deposits from customers & Valuable papers issued” of VND 152 billion (USD 6.8 billion), outstanding credit of VND 131 billion (USD 5.9 billion) and approximately 2 million customers.
About the International Finance Corporation (IFC)
The International Finance Corporation (IFC), a member of the US-based World Bank Group, offers loans, equity investments, technical assistance and risk mitigation services to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2016, IFC has 184 member countries that drive its policies and approve disbursements, and it reported total assets of USD 90.4 billion.
About Goldman Sachs Group
Goldman, Sachs and Co. is a US-based financial institution offering investment banking, investment management and financial advisory services to corporations, financial institutions, governments and retail clients. Founded in 1869, the firm is headquartered in New York and maintains offices in 36 countries. As of June 30, 2016, it reports unaudited total assets of USD 439 billion.
Sources and Additional Information:
[3] MicroCapital Universe Profile: Vietnam Prosperity Joint Stock Commercial Bank (VPBank)
[4] MicroCapital Universe Profile: International Finance Corporation (IFC)
[5] MicroCapital Universe Profile: Goldman Sachs Group
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