Hanoi, February 26, 2008—IFC, a
member of the World Bank Group, today announced that it has closed the
second tranche of a housing finance deal with Saigon Thuong Tin Commercial
Joint Stock Bank (Sacombank) to help develop Vietnam’s financial sector.
The 800 billion Vietnamese dong ($50 million) facility is funded
through the first 10-year, cross-currency swap transaction in the country,
as part of a long-term partnership between the two organizations.
The cooperation between IFC and Sacombank is shifting increasingly toward
sharing knowledge and developing innovative products in such areas as mortgage
financing, energy efficiency, and infrastructure, where IFC believes there
is still a huge underserved market. IFC will also assist Sacombank
in developing its long-term IT strategy.
Sin Foong Wong, IFC Country Manager for Cambodia, Lao PDR, and Vietnam,
said, “IFC is optimistic about the development of Vietnam’s financial
sector, and we are stepping up our investments and advisory activities
in line with the country’s ambitious social economic development plan.”
Since starting its operations in 1994 in Vietnam, IFC has invested more
than $500 million in the country in a variety of sectors, including over
$150 million was in the financial sector. In 2008, IFC plans to invest
about $100 million in debt, equity, and risk-sharing instruments in the
country’s financial sector. IFC is also supporting key financial sector
players through its regional advisory program, the multidonor-funded Mekong
Private Sector Development Facility.
Sacombank is one of IFC’s first financial sector clients in Vietnam—the
relationship began in the early 2000s. IFC’s initial 8 percent stake
in the bank was accompanied by a comprehensive advisory package that covered
a residency advisor program, risk management, SME lending, corporate governance,
and other areas. Over the last few years, IFC has continued to support
the bank’s growth strategy through a number of rights issues.
IFC, a member of the World Bank Group, fosters sustainable economic
growth in developing countries by financing private sector investment,
mobilizing private capital in local and international financial markets,
and providing advisory and risk mitigation services to businesses and governments.
IFC’s vision is that people should have the opportunity to escape poverty
and improve their lives. In FY07, IFC committed $8.2 billion and mobilized
an additional $3.9 billion through syndications and structured finance
for 299 investments in 69 developing countries. IFC also provided advisory
services in 97 countries. For more information, visit www.ifc.org.