Sacombank secures global credit facility

April 01, 2011 | 15:41

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A consortium of international financial institutions led by the Netherlands Development Finance Co (FMO) has agreed to provide a credit line of $150 million to Ho Chi Minh City-headquartered Sacombank.

source: sacombank

The bank signed on March 30 a memorandum of understanding for the financial assistance with FMO and other lending institutions from Norway, France, Belgium and Germany .

The institutions are: Norfund (Norwegian Investment Fund for Developing Countries); Proparco (Promotion and Participation for Economic Cooperation under the French Development Agency – AFD); BIO (Belgian Development Finance Institution); and DEG, which specialises in financing investments of private companies in developing and transition countries, and is a member of the German government-owned KfW Group.

Disbursement of the credit facility, which has a term of 10 years, will be made in two tranches. The first tranche of $95 million will be disbursed in the second quarter of this year and the second one of $55 million at the year-end, said FMO senior investment director Jurgen Rigterink.

Sacombank was chosen to receive the credit facility because of its leading position in Vietnam's banking sector, having a charter capital of more than VND9 trillion ($450 million) and a network of 370 branches and transaction offices.

Sacombank has so far received similar support of around $300 million from FMO, Proparco, IFC, ADB and other international institutions.

VIR/VNA

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