MICROCAPITAL BRIEF: International Finance Corporation, BNP Paribas to Loan $25m to Vietnam’s Orient Commercial Joint Stock Bank for Small and Medium-sized Enterprises, Women-owned Businesses

The International Finance Corporation (IFC), the private-investment arm of the World Bank Group, has agreed to provide a syndicated loan of USD 25 million toVietnam’s Orient Commercial Joint Stock Bank to expand financing to small and medium-sized enterprises (SMEs) and women-owned businesses. The financing package consists of USD 15 million from IFC and USD 10 million from BNP Paribas, a France-based financial institution. USD 5 million of the funds are earmarked for on-lending to businesses owned and operated by women. No schedule for the project or information on how many people the funds are expected to reach has been disclosed.

For the year 2010, the Orient Commercial reported total assets of VND 19.7 trillion (USD 943 million), a gross loan portfolio of VND 11.6 trillion (USD 556 million), return on equity (ROE) of 14.5 percent and return on assets (ROA) of 2.2 percent. As of June 2011, BNP Paribas reported total assets of USD 2.7 trillion. As of 2011, IFC has 182 member countries, total assets of USD 68.5 billion and total investment mobilization of USD 12.2 billion to 518 projects.

By Brendan Millan, Research Associate

About International Finance Corporation (IFC): A member of the World Bank Group, IFC offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2011, IFC has 182 member countries, total assets of USD 68.5 billion and total investment mobilization of USD 12.2 billion to 518 projects.

About Orient Commercial Joint Stock Bank: Incorporated in 1996, Orient Commercial is a Vietnamese financial institution. The bank has approximately 94 branches across the country. For the year 2010, the bank reported total assets of VND 19.7 trillion (USD 943 million), a gross loan portfolio of VND 11.6 trillion (USD 556 million), return on equity (ROE) of 14.5 percent and return on assets (ROA) of 2.2 percent.

About BNP Paribas: Formed from the 2000 merger of two French banks, Banque Nationale de Paris (BNP) and Paribas, BNP Paribas is a financial services provider headquartered in Paris. The bank has operations in 84 countries and focuses on retail banking, investment banking and wealth management. As of June 2011, it reported total assets of USD 2.7 trillion.

Sources and Resources:

[1] International Finance Corporation (IFC): “IFC Helps Increase Lending to Small Businesses and Women Entrepreneurs in Vietnam” by Luu My Van. http://www.ifc.org/IFCExt/Pressroom/IFCPressRoom.nsf/0/D27092F3E235404285257A08000D29AF

MicroCapital.org story, May 9, 2012, “MICROCAPITAL BRIEF: State Bank of Vietnam (SBV) to Implement Microfinance Sector Development Project Including Legal Framework, Capacity Development Through 2020”, https://www.microcapital.org/microcapital-brief-state-bank-of-vietnam-sbv-to-implement-microfinance-sector-development-project-including-legal-framework-capacity-development-through-2020/

MicroCapital.org story, December 24, 2011, “MICROCAPITAL BRIEF: Vietnam Sets 10-Year Microfinance Strategy, French Development Agency Donates $1.3m”, https://www.microcapital.org/microcapital-brief-vietnam-sets-10-year-microfinance-strategy-french-development-agency-donates-1-3m/

MicroCapital story, April 1, 2011, “MICROCAPITAL BRIEF: Sacombank of Vietnam Issues 10-Year $150m Subordinated Syndicated Loan Arranged By the Netherlands Development Finance Company (FMO) to Support Banking, Small and Medium-Sized Enterprises (SMEs)”, https://www.microcapital.org/microcapital-brief-sacombank-of-vietnam-issues-10-year-150m-subordinated-syndicated-loan-arranged-by-the-netherlands-development-finance-company-fmo-to-support-banking-small-and-medium-sized-ente/

MicroCapital Universe Profile: International Finance Corporation (IFC), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29

Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/

Similar Posts: