Hanoi, Vietnam, December 15, 2008
—IFC, a member of the World Bank Group, today announced its intention to sell 50 percent, or 16,083,664, of its common shares in Vietnam’s Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) after supporting the company's transition to a leading joint stock bank. Through their partnership, IFC and Sacombank have increased collaboration in developing innovative products in mortgage and energy-efficiency financing, as well as trade finance.
Karin Finkelston, IFC Director for East Asia and Pacific, said, “Despite the global financial crisis, we will continue to play an active countercyclical role in helping to develop Vietnam's private sector, in particular the financial sector, which is a priority for IFC.”
Sacombank was one of IFC’s first financial sector clients in Vietnam, beginning in the early 2000s. IFC’s initial eight percent stake in the bank was accompanied by a comprehensive advisory package, which included a resident advisor program, risk management, small and medium enterprise lending, and corporate governance.
Over the last few years, IFC has continued to support the bank’s growth strategy through several rights issues and provided credit facilities for housing and trade finance. To date, IFC has committed a total of $88 million to the bank.
Since starting operations in Vietnam in 1994, IFC has invested more than $600 million in the country in a range of sectors, including over $260 million in the financial sector. IFC is fully engaged in countercyclical investments in Vietnam, providing much-needed liquidity in the form of trade finance and providing equity to banks and other market participants. With its donor partners, IFC is also helping key financial sector players through its regional advisory program.
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $16.2 billion in fiscal 2008, a 34 percent increase over the previous year. For more information, visit www.ifc.org.
