Vietnam, October 24, 2002—The International
Finance Corporation (IFC), the private sector development arm of the World
Bank Group, will strengthen Vietnam’s capital markets and its institutional
investor base with an investment of US$2 million in Dragon Capital Group
Limited (Dragon Capital).
Founded in 1994 and incorporated in the British Virgin Islands, Dragon
Capital is a diversified investment banking institution offering traditional
financial products and services that focus exclusively on the Vietnamese
capital markets. The company is known within Vietnam as well as in
international financial circles as one of the first Vietnam-focused financial
institutions. Dragon Capital serves the investment banking needs
of international and domestic businesses to enable them to realize their
investment goals in Vietnam.
Dragon Capital is also the fund manager of Vietnam Enterprise Investments
Limited (VEIL), a closed-end fund dedicated to Vietnam that invests in
a balanced portfolio of Vietnamese companies. Last year, IFC supported
VEIL with a $12 million loan. Currently, VEIL has $64 million in gross
Through this project, IFC will assist the company in the further development
of its fund management and advisory services. Based on its wide experience,
IFC will also be able to strengthen Dragon Capital’s corporate governance
practices making it a model financial institution for others to follow.
Karl Voltaire, Director of IFC’s Global Financial Markets Group said,
“As Vietnam’s capital markets are at an early stage of development, institutions
such as Dragon Capital can have a strong demonstration effect, contributing
to the establishment of a competitive market structure.”
John Shrimpton, Director of Dragon Capital said, “We are extremely pleased
to welcome the IFC as Dragon Capital’s first institutional shareholder.
With IFC’s support, we look forward to contributing to the further
development of Vietnam’s capital markets.”
IFC’s mission is to promote sustainable private sector investment in developing
countries, helping to reduce poverty and improve people’s lives. IFC
finances private sector investments in the developing world, mobilizes
capital in the international financial markets, and provides technical
assistance and advice to governments and businesses. Since its founding
in 1956, IFC has committed more than $34 billion of its own funds and arranged
$21 billion in syndications for 2,825 companies in 140 developing countries.
IFC’s committed portfolio at the end of FY02 was $15.1 billion,
with an additional $6.5 billion held for participants in loan syndications.