IFC Arranges $150 Million Financing Package for ABBANK to Expand Lending to Smaller Businesses and Women-Owned SMEs

Hanoi, December 19, 2017
—IFC, a member of the World Bank Group, and Goldman Sachs
10,000 Women

announced a syndicated senior loan of $110 million to An Binh Commercial Joint Stock Bank (ABBANK) to boost lending to small and medium enterprises (SMEs). This is the first phase of a up to $150 million financing package IFC is arranging for the bank. At least one third of the funding will support women-owned enterprises.

With this funding, ABBANK aims to triple its SME portfolio and quadruple the size of its lending to women-owned SMEs over a five-year period. The outstanding SME portfolio is expected to reach more than $1 billion by 2021.

As Vietnam’s economic growth continues, long-term funding for SMEs is going to become critical. While SMEs account for more than 98 percent of the country’s businesses and 50 percent of employment, only 30 percent of the registered SMEs has access to formal financial services. Further, a new IFC study finds that it is even more difficult for women-owned SMEs to obtain bank loans, with an estimated credit gap of $1.2 billion per annum.

“The much-needed syndicated funding from IFC and partner banks will help strengthen ABBANK’s SME and women-owned SME portfolios, thus positioning the bank to become one of the leaders in this segment,” said an ABBANK representative. “In addition, this loan will provide the bank with a more diversified source of long-term funding from international lenders.”

Of this $150 million financing package, IFC is contributing $40 million from its own account, while $70 million comes from Industrial and Commercial Bank of China Limited (ICBC), Bangkok Bank Public Company Limited and Maybank International Ltd. The remaining $40 million will be committed by two other international lenders within this month.

Specifically, at least 30 percent, $45 million, of the funding will be exclusively earmarked for women-owned SMEs, thanks to the Women Entrepreneurs Opportunity Facility (WEOF), a global facility dedicated to expanding access to capital for women entrepreneurs, aiming to help close the estimated $285 billion credit gap for women-owned businesses around the world. The WEOF was launched in 2014 as a partnership between IFC’s Banking on Women program and the Goldman Sachs
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initiative to radically expand access to finance for women-owned businesses. Since then, it has made almost $900 million in commitments to financial institutions in 15 countries to spur lending to women entrepreneurs.

“Goldman Sachs research shows that closing the credit gap for women-owned SMEs in emerging markets could push income per capita an average of 12 percent higher by 2030,” said Charlotte Keenan, Head of
10,000 Women
. “Women entrepreneurs have real potential to impact Vietnam’s future growth as a result of this commitment. Through this partnership, we will help to build resilient, women-owned businesses and enable women entrepreneurs to reach their full potential with the capital and support they need.”

“This project will promote women-owned SMEs as a viable business opportunity when provided with tailored products, appropriate offerings, and right marketing,” said Kyle Kelhofer, IFC Country Manager for Vietnam, Cambodia and Lao PDR. “It will create a momentum for other lenders in Vietnam to expand their product offerings in this segment of the market. Subsequently, it will support the growth of women-owned SMEs, which will in turn create jobs and drive wage growth.”

IFC provided ABBANK with a trade line under its Global Trade Finance Program in 2009 before it became the bank’s foreign investor with 10 percent equity stake in 2013. Along with financing, IFC has helped ABBANK strengthen its corporate governance and build up its SME banking capacity over the past five years. Going forward, IFC will continue advising the bank on segmenting, developing and strengthening its value proposition for women entrepreneurs.

About IFC

IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work with more than 2,000 businesses worldwide, using our capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In FY17, we delivered a record $19.3 billion in long-term financing for developing countries, leveraging the power of the private sector to help end poverty and boost shared prosperity. For more information, visit

www.ifc.org

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About Goldman Sachs

10,000 Women

The Goldman Sachs
10,000 Women

initiative is an effort to foster economic growth by providing women entrepreneurs around the world with business education and access to capital. The initiative has reached women from across 56 countries through a network of 100 academic, non-profit, and bank partners. In partnership with IFC, Goldman Sachs
10,000 Women
launched the first-ever global finance facility in 2014 to enable access to capital to more women entrepreneurs.

About ABBANK

An Binh Commercial Joint Stock Bank (ABBANK) was established under license No. 535 / GP-UB issued by the People’s Committee of Ho Chi Minh City on May 13, 1993. With an aim to be a leading commercial joint stock bank in Vietnam focusing on retail banking, ABBANK continues to expand its network, upgraded bank’s operation model as well as its facilities and improve the quality of service extended to both individual and co-operate customers. As of 30/06/2017, ABBANK network has reached 165 transaction centers in 34 provinces and cities (35 branches, 130 transaction offices). For more information with