IFC Strengthens Partnership with Sacombank with Housing Finance Facility
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.
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