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Norfund grants $30 million convertible loan to SeABank
The Norwegian Investment Fund for Developing Countries (Norfund) on June 19 committed $30 million to Hanoi-headquartered SeABank (HSX: SSB) through a convertible loan, which can be converted into SeABank common shares within four years.
This investment aims to enhance capital to support small- and medium-sized enterprises (SMEs), individual customers, and micro-enterprises in Vietnam.
Norfund, an investment fund under the Norwegian government, is dedicated to supporting effective and sustainable businesses in developing countries. The fund's mission is to create jobs and improve lives by investing in enterprises that promote sustainable development. It is fully financed by the Norwegian government's international development assistance budget and serves as the primary tool for strengthening the private sector in developing countries while reducing poverty.
Le Thu Thuy, vice chairwoman of SeABank's board of directors, stated, “The collaboration between SeABank and Norfund aims to promote Vietnam’s economic growth and enhance financial access for SMEs and individual customers. This loan also strongly supports our sustainable development strategy.”
Fay Chetnakarnkul, regional director for Asia at Norfund, commented, “Financial inclusion is central to Norfund’s mission, and this aligns with SeABank's commitment to funding and supporting individual customers, SMEs, and micro-enterprises in Vietnam. Our partnership will focus on reaching unbanked and underserved populations.”
This cooperation will provide Vietnamese SMEs and SeABank's corporate clients with additional financial resources for their long-term capital needs. Moreover, the bank will have more funds to support the growing demand for consumer loans among individual customers.
SeABank has previously secured nearly $600 million from esteemed international financial institutions like IFC and DFC. This funding aids in sustainable development strategies and enhances financial access for SMEs, especially women-owned businesses, while promoting best practices in environmental and social risk management and combating climate change.
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