IFC fully divests from ABBank

May 24, 2024 | 07:33

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International Finance Corporation (IFC), a member of the World Bank Group, has sold 84.8 million shares or an 8.2 per cent stake in ABBank, according to a planned divestment roadmap.

Following the deal, IFC has fully divested from ABBank. Maybank, Malaysia’s largest bank, is the biggest foreign shareholder in ABBank, with a 16.4 per cent stake.

As a strategic shareholder, over the past 14 years of partnership, IFC has provided efficient support to ABBank in terms of capital sources, medium- and long-term loan products, and trade finance.

In particular, IFC has offered consulting and shared practical experiences for ABBank to implement projects to ensure compliance with risk management according to Basel III standards.

After divesting from ABBank, IFC will reinvest capital to support more Vietnamese businesses, thereby maximising its development impact. Specifically, IFC will partner with banking and non-bank financial intermediaries to promote financial inclusion and climate finance.

Meanwhile, ABBank is also mulling an option of attracting more capital from foreign investors in the future when there are good opportunities and strategic partners suitable for the bank's sustainable development goals.

At the AGM in 2024, Pham Duy Hieu, acting general director of ABBank, said, under the consultancy of McKinsey, ABBank had formulated a five-year roadmap from 2024 to 2028 outlining goals to reach a capitalisation of $3 billion by 2028, total assets of $15 billion, and profits exceeding $392.6 million.

In 2024, ABBank set a target of generating $39.3 million in pre-tax profit, up 95 per cent against 2023.

IFC focuses on Vietnam’s transition to low-carbon model

To help boost the value and competitiveness of Vietnam’s agricultural sector, the IFC a member of the World Bank Group is supporting A An Food JSC to enhance its rice production quality and sustainability. This will raise income for farmers and mills along the company’s supply chain and reduce greenhouse-gas emissions in rice farming.