ABBANK gets US$40 million credit from DEG and Norfund
An Binh Commercial Joint Stock Bank (ABBANK) has signed a a senior loan agreement worth US$40 million with DEG and Norfund for on-lending to small- and medium-sized
Enterprises (SMEs), particularly women-run ones.
DEG and Norfund are global financial institutions supporting the private sector in developing countries. They assess and approve financing under international standards, conduct comprehensive examination of partners in terms of corporate governance, business strategies, financial health, and commitment to the environment and society.
Caption: A customer transacts at an ABBANK office
The financing package has indicated DEG’s and Norfund’s trust in the contribution of ABBANK to the development of the Vietnamese business community, especially SMEs, said Mr.Nguyen Manh Quan- acting general director of ABBANK .
Germany’s DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH, a subsidiary of KfW, is one of the world’s largest private-sector development financiers. For 55 years, DEG has supported private-sector enterprises operating in developing as well as emerging-market countries.
Oslo-headquartered Norfund, known as the Norwegian Investment Fund for Developing Countries, has regional offices in Bangkok, Johannesburg, Nairobi and San Jose. Its investment pledges have amounted to dozens of billions of dollars so far.
Taking credit from international institutions helps ABBANK to strengthen its financial capabilities, relations with partners and adopt know-how from lenders. The deal signed with DEG and Norfund will not only open up cooperation opportunities for ABBANK but also help the bank bolster its reputation in the local financial market as well as approach the international market.
Lending to SMEs is the central segment in the development strategy of ABBANK. The US$40 million package bolsters ABBANK in its attempts to become a leading commercial bank in Vietnam in the retail field, and enables the bank to diversify long-term capital sources from international lenders.
Such enhancement of ABBANK’s lending capabilities also demonstrates long-term commitments of international institutions in promoting the Vietnamese financial market.
With 25 years’ experience in the financial-banking sector, ABBANK has worked to prove itself a reputable bank with safe, effective operations and community activities.
Moody’s has increased the rating of ABBANK with stable outlook, taking into account such criteria as asset management, profitability, stability of capital mobilization and liquidity. With this result, ABBANK continues to be in the group of commercial Vietnamese banks with high ratings.
ABBANK last year received prestigious awards, including Best Retail Bank Vietnam 2017 awarded by Global Banking & Finance Review, Top 10 Vietnam Leading Brands 2017 by the Association of Science and Vietnamese Business Development, and Excellence of Payment Bank of Southeast Asia by Maybank. Most recently, ABBANK has got Recognized Employer Partner certification of CPA Australia.