Hanoi, Vietnam, January 18, 2012—
IFC, a member of the World Bank Group, and Techcombank today signed an agreement to expand financing to local agribusinesses in Vietnam, which will create employment and income opportunities that contribute to Vietnam’s overall economic growth.
Under its Global Warehouse Finance Program, IFC will provide a $20 million loan to Techcombank to finance agricultural commodity producers and traders, especially small and medium enterprises, who can get credit by using their commodities deposited in warehouses as security for the loans.
“By joining the IFC’s Global Warehouse Finance Program, we will further increase our lending capacity to the agriculture sector, where we have considerable market presence and take a step closer to becoming a market leader,” said Simon Morris, Techcombank‘s CEO. “IFC’s global experience in warehouse financing will help us improve risk management practices in commodities financing.”
In addition to the loan, IFC will also provide advisory services to Techcombank on warehouse management and other fields such as product development, marketing, pipeline development, and building partnerships with networks of warehouse operators.
“The agriculture sector is a key pillar of Vietnam's economy. Expanding availability of finance and designing specialized lending products will help generate jobs and higher income, particularly benefiting rural smallholders,” said Simon Andrews, IFC Regional Manager for Vietnam, Cambodia, Lao PDR, and Thailand. “This is our first collaboration with a local bank to encourage further development of commodity-backed financing products in Vietnam, and expand funding alternatives in the food supply chain.”
IFC has been a partner of Techcombank since 2003, providing both investment and advisory services to help expand access to finance to Vietnamese small and medium enterprises, a key engine of the country’s growth.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, providing advisory services to businesses and governments, and mobilizing capital in the international financial markets. In fiscal 2011, amid economic uncertainty across the globe, we helped our clients create jobs, strengthen environmental performance, and contribute to their local communities—all while driving our investments to an all-time high of nearly $19 billion. For more information, visit
www.ifc.org
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About Techcombank
Established in 1993, Techcombank is currently one of the largest joint stock banks in Vietnam, consistently posting growth in excess of 30% for both total assets and annual turnover. As of September 30th, 2011, Techcombank chartered capital, total assets and total loan outstanding were VND 8,788 billion, VND 185,598 billion and VND58,591 billion respectively. The Bank reported profit before tax of VND 2,258 billion in the first nine months of the year.
With an extensive network development of more than 300 branches/transaction offices and 1,100 ATMs; and a strong workforce of over 7,500 professionally trained staff, Techcombank is well-placed with better customer service and more innovative business solutions to serve nearly 60,000 corporate clients and more than 02 million individual customers all over the country.
