Capital is a big problem for many Vietnamese businesses when domestic capital mobilization channels such as bank credit, corporate bonds and the stock market are disrupted.
In that context, foreign capital flows become a salvation for businesses, helping them to maintain production and business activities, creating growth momentum for the coming years.
Recently, An Gia Real Estate Development and Investment Joint Stock Company (AGG) has approved a short-term loan of $10 million from The Shanghai Commercial & Saving Bank, Ltd. – Offshore Banking Branch (SCSB – OBB).
At the same time, AGG’s Board of Directors approved the company’s loan of $10 million from The Shanghai Commercial & Savings Bank, Ltd. – Dong Nai branch (SCSB – Dong Nai) to issue a standby letter of credit for SCSB – OBB credit.
Previously, its Board of Directors also approved a loan with a maximum value of $15 million granted by Hana Pte Limited. The loan was later adjusted to $18 million.
Another major real estate company, No Va Real Estate Investment Group JSC (Novaland – Stock Code: NVL) is also planning to borrow $40 million from VietinBank Filiale Deutschland (VietinBank’s German branch) and Maybank Labuan (Maybank branch in Malaysia).
In August 2022, the company’s Board of Directors approved a transaction to secure the company’s loan obligations for a $100 million loan from Credit Opportunities III Pte. Limited (Singapore).
Not only real estate businesses but some banks have also succeeded in mobilizing international loans such as Vietnam Prosperity Commercial Joint Stock Bank (VPBank), Southeast Asia Commercial Joint Stock Bank (SeABank), Joint Stock Commercial Bank International (VIB).
Specifically, on November 11, VPBank announced that it had signed a syndicated loan agreement worth $500 million from five major financial institutions, including the Asian Development Bank (ADB), Sumitomo Mitsui Banking Corporation (SMBC), Japan International Cooperation Agency (JICA), ANZ Bank and Maybank Securities Pte. Ltd. – a member of Maybank Investment Banking Group.
Funds from this loan will be used by VPBank to meet the financial needs of small and medium enterprises (SMEs), and women-owned enterprises in Vietnam
Previously, in April 2022, VPBank was also disbursed a syndicated loan of $600 million from major Asian financial institutions such as SMBC, Maybank, Cathay United Bank, CTBC and Indian Central Bank.
In November 2022, the US International Development Finance Corporation (DFC) signed a loan of $200 million to SeABank for 7 years. This capital will be used to provide loans to small and medium enterprises, energy saving projects and retail customers.
Earlier this year, SeABank was also granted a credit package by the International Finance Corporation (IFC) and five international investment funds including Banque Internationale de Commerce-BRED, BlueOrchard Microfinance Fund, KASIKORNBANK PCL, OPEC and responsAbility Investments AG. This package is worth $220 million used to support small and medium-sized businesses, women-owned businesses, and climate change financing.
In November 2022, VIB announced that it had been disbursed with a loan of $150 million by IFC with a term of 5 years. This bank is expected to spend more than $45 million financing home purchases valued at less than $35,000 USD.
Previously, in March 2022, VIB also successfully mobilized a syndicated loan worth $260 million from the Asian Development Bank (ADB) and some major banks in the region.
Alice Hoang Thao – VietnamCredit