FMO arranged a landmark loan for Sacombank, a Vietnamese bank specialized in financing small companies. This first-ever subordinate loan to a commercial bank in Vietnam strengthens Sacombank's capital position, further increasing its ability to make loans to Vietnamese SMEs and retail customers. Five other European development finance institutions joined FMO in providing the US$105 million syndicated loan. FMO contributed US$25 million to the loan.
The transaction helps boost development of Vietnam's capital market and its SME sector. In many Vietnamese regions, Sacombank is one of the few commercial banks and a rare source of much-needed financing for small and medium sized companies and retail customers.
FMO and its European partners also signed a capacity development contract with Sacombank, which will assist the bank in further improving its asset and liability management, corporate governance and implementing a social and environmental risk management system.
Marking the importance of the deal, Dutch Princess Maxima, in her position as the UN Secretary-General's Special Advocate for Inclusive Finance for Development, attended the signing of the transaction in Ho Chi Min City.
|Investment:||US $25 million loan and grant|