BIDV: Chinese bank offers $200 million loan

The State-run China Development Bank (CDB) will lend the Bank for Investment and Development of Viet Nam (BIDV) US$200 million to develop electricity, telecommunications, agriculture, transport, light industry and building material projects under a credit contract signed this morning.

The money will be paid back to the Chinese bank over five years.

A letter of commitment to this effect was signed in Ha Noi on Wednesday by the two banks' representatives in the presence of Vietnamese Vice President Nguyen Thi Doan and her visiting Chinese counterpart Xi Jinping.

This is the second preferential credit package which CDB has granted to BIDV following its $100 million loan last year.

In the context of limited credit, especially middle and long term loans, the loan has proved CDB's trust in BIDV in terms of its financial capacity and prestige. The loan is expected to supplement a considerable amount of funds for the Vietnamese bank to improve its capital structure.

BIDV is striving to become a multimodal financial-banking group that provides services meeting international standards.

By the end of last month, its total assets reached VND403 trillion, with mobilised capital at VND274 trillion, credit at VND268.2 trillion and pre-tax profit at VND4.1 trillion.

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