Share this page

IFC Investment in TPBank Increases Access to Finance for SMEs in Vietnam

Hanoi, Vietnam, August 26, 2016 — IFC’s recent quasi equity investment in TienPhong Commercial Joint Stock Bank (TPBank) helps the institution expand its loan services to better serve growing Vietnamese businesses.  
As a member of the World Bank Group, IFC supports greater access to finance for the private sector by boosting lending capacity and strengthening operations of local banks in developing economies.
This quasi equity investment of up to VND 403.1 billion (about $18.35 million equivalent) in dividend preference shares once converted, would allow IFC to become a shareholder in TPBank, owning at that time 4.999 percent of the bank's equity capital. Through this investment TPBank has the ability to offer loans to more than 40,000 small and medium enterprises in Vietnam representing a loan portfolio growth of more than $2 billion equivalent over the next five years.
IFC is also providing advisory services to further improve the lender’s risk management, digital and Small and Medium Enterprises (SME) banking products, as well as corporate governance standards.
“We are excited to have IFC join us as a dividend preferred shareholder, marking a long-term strategic cooperation going forward,” said Do Minh Phu, TPBank’s Chairman. “IFC’s abundant financing and extensive relationship network will enhance our capital resources and governance capacity as well as uncovering opportunities of cooperation with local and international financial institutions.
IFC’s investment supports TPBank’s long-range plan of becoming the country’s leading digital bank, expanding its retail and SME reach, which comprise about 85 percent of TPBank’s portfolio.
“The investment in TPBank demonstrates IFC’s continued support to Vietnam’s banking sector and its development of diversified financial products and services to small and medium enterprises, which will in turn increase financial inclusion and employment and reduce poverty,” said Kyle Kelhofer, IFC Country Manager for Vietnam, Cambodia and Vietnam.
Founded in 2008, TPBank has grown into a medium-sized bank with total assets of $3.7 billion as of mid 2016. TPBank joined IFC’s Global Trade Finance Program in December 2015 with an initial trade line of $10 million. IFC has recently increased its trade exposure to $30 million, based on active utilization of the lender. To date, IFC has supported $40 million worth of trade transactions processed by TPBank for Vietnamese importers and exporters.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with 2,000 businesses worldwide, we use our six decades of experience to create opportunity where it’s needed most. In FY16, our long-term investments in developing countries rose to nearly $19 billion, leveraging our capital, expertise and influence to help the private sector end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org
Stay Connected
About TPBank
Established on 5 May 2008, TPBank inherits technological expertise and financial strength from its shareholders, which include DOJI Gold and Gems Group, FPT Group, Vietnam Mobile Telecom Services Company (MobiFone), Vietnam National Reinsurance Corporation (Vinare), and SBI Ven Holding Pte. Ltd, Singapore. Our mission is to offer customers the most beneficial financial solutions and banking products and services, based on our advanced technological infrastructure and specialized management skills. With our slogan, “A deeper understanding,” we aim to become Vietnam’s leading digital bank, continuously improving our products and services through developments in banking technology. For more information, please visit http://tpb.vn .