Southeast Asia Commercial Joint Stock Bank (SeABank), located in Vietnam, will receive a $30 million convertible loan from Norfund, the Norwegian Investment Fund for Developing Countries.
The loan can be converted into common shares of SeABank within the four-year term, according to a statement released by the bank on Wednesday. The goal of the loan is to give retail banking customers, SMEs, and microenterprises in Vietnam with extra capital.
“The partnership shares our joint purpose of impacting Vietnamese economy growth in general, while enhancing financial access for SeABank’s SMEs and retail banking customers in particular,
“The loan also supports the bank’s sustainable development strategy to the utmost in the upcoming period,” said Le Thu Thuy, Vice Chairwoman of the bord of directors (BOD), SeABank.
The statement claims that the cooperation’s goal is to give SMEs access to more funding sources so they can meet their long-term capital needs.
In light of this group’s growing financial needs, the bank also has extra capital available for retail lending.
“Financial inclusion is Norfund’s core mandate and is aligned with SeABank’s strong commitment to finance and support retail banking customers and SMEs in Vietnam,
“The partnership will look to be a catalyst to help uplift the unbanked and underbanked in the country,” said Fay Chetnakarnkul, Regional Director (Asia) of Norfund.
As per the statement, Norfund’s investment has exhibited the growing confidence, confirming SeABank’s standing, effectiveness in operations, and efficient use of capital.
This aids in capacity improvement and the efficient promotion of important business areas for SeABank’s corporate clients.
By investing in companies in developing nations that promote sustainable development, Norfund, an investment fund owned and supported by the Norwegian government, aims to enhance lives and generate jobs.
The Norwegian International Development Assistance budget, which is the government’s primary means of bolstering the private sector and lowering poverty in developing nations, provides the entire funding for the company.
SeABank had previously been the recipient of continuous foreign investments from International Finance Corporation (IFC), DFC, and other prominent organizations, totaling close to $600 million.
With a focus on SMEs financial access enhancements, the application of environmental, social, and governance (ESG) practices, and climate change mitigation, these seek to expedite the Bank’s sustainable development strategies.
SeABank has been able to provide flexible financial solutions and actively support SMEs, particularly women-owned SMEs, in capital use optimization thanks to international funding and available capacity.
