|
IFC eyes An Binh Bank investment
The International Finance Corporation (IFC) plans to forge a long term partnership with An Binh Bank (ABB).
IFC, a financial arm of the World Bank, will provide a long term US$75 million loan to the bank.
The IFC is considering investing up to US$50 million in the bank by purchasing senior and convertible debt instruments. The investment is expected to help the bank maintain a healthy Capital Adequacy Ratio (CAR), while improving its loan portfolio.
A reliable source from An Binh Bank said that the two sides were in the process of negotiating the $50 million investment deal.
The corporation also plans to provide a $25 million loan to the bank to help support climate change initiatives and enhance financing for eligible projects in the Energy Efficiency (EE) and Cleaner Production (CP) sectors. These projects are congruent with the IFC's financial strategy for Viet Nam and are in line with the WB's efforts to use market mechanisms to mitigate climate change's impacts in Viet Nam.
IFC has been working with An Binh Bank on several projects to support small and medium sized enterprises (SMEs) and to finance enterprises that are committed to protecting the environment and conserving energy. IFC also promises to help An Binh Bank to improve its technological infrastructure and corporate governance.
By the end of last month, the bank had total assets worth VND36.26 trillion ($1.85 billion) and a total outstanding loan worth VND17.95 trillion ($920.51 million). The bank earned VND546.2 billion ($28.01 million) in pre-tax profit during the first nine months of the year, a 94.1 per cent increase against the same period last year.
An Binh Bank has VND3.48 trillion ($178.46 million) in charter capital, and the financial institute plans to increase its charter capital to VND3.83 trillion ($196.41 million) by the year's end.
Last week the IFC bought 10 per cent stake, worth $190 million, in Vietinbank.
vietnamnews
|
