The Saigon-Hanoi Commercial Joint Stock Bank (SHB) and the International Finance Corporation (IFC), a member of the World Bank (WB), held a signing ceremony on March 21 for a loan package of $120 million.

The first loan within a total package of $120 million from the IFC’s direct capital has a term of three years, and the IFC will also continue to promote an additional loan package mobilized from international lenders.

This loan will help SHB in developing its small and medium-sized enterprise (SME) loan portfolio, which includes women-owned businesses and those involved in supply chains. SHB commits to setting aside a minimum of 37.5 per cent to lend to women-owned businesses and it will receive a grant of $226,000 from the Women Entrepreneurs Finance Initiative (We-Fi) and the Women Entrepreneurs Opportunity Facility (WEOF).

Meanwhile, 16.7 per cent of the loan value will be exclusively financed by SHB for SMEs involved in supply chains. In addition to financial support, the IFC is advising SHB to promote supply chain financing with specialized solutions and products, thereby creating leverage and resilience and providing financial solutions to help create a seamless, cost-effective as well as efficient supply chain.

According to Ms. Ngo Thu Ha, CEO of SHB, the fact that the IFC and many international financial institutions have accompanied SHB in recent years continues to affirm its prestige and capacity in the international financial market. And it also affirms its strategy in safe, strong development, building a solid foundation to grow stably and sustainably in order to comprehensively meet safety standards and comply with international standards.

“SHB has implemented many programs to accompany and support SMEs, especially women-owned enterprises, which are increasingly active in contributing to economic development,” Ms. Ha said. “We believe that with timely support policies and solutions and capital flows like this package from the IFC, SMEs will be able to unlock their potential, expanding production and pursuing sustainable development.”

The IFC is also expected to provide a trade guarantee line of $75 million to SHB under the framework of the Global Trade Finance Program (GTFP). Joining the GTFP will help SHB expand its global network of partner banks and contribute to promoting the growth of trade and supporting import and export activities of domestic enterprises.

Similarly, Mr. Thomas Jacobs, IFC Country Manager for Vietnam, Cambodia and Laos, said the new partnership with SHB will help the bank strengthen its core business of serving smaller enterprises and allow those businesses to benefit from financing to link with global supply chains, a move that will ultimately contribute to economic growth and job creation in Vietnam. “It is important that SMEs, especially those owned by women, be supported and be able to access the capital they need to grow and expand,” he added.

The IFC along with its partners in the program will also accompany and advise SHB on building development and business strategies, contributing to improving governance and risk management capacity under international standards.

SHB will have more resources and advantages to seize opportunities, connect capital supply and demand more effectively, and facilitate long-term plans to continue to grow sustainably and effectively.