The Asian Development Bank (ADB) and Liên Việt Post Joint Stock Commercial Bank on Wednesday sign a financing package of up to US$80 million to expand access to finance for a women-owned small and medium-sized enterprises project in Việt Nam. — Photo tapchicongthuong.vn

HÀ NỘI  — The Asian Development Bank (ADB) and Liên Việt Post Joint Stock Commercial Bank (LPBank) on Wednesday signed a financing package of up to US$80 million to expand access to finance for a women-owned small and medium-sized enterprises (WSMEs) project in Việt Nam.

The financing comprises a $30 million loan from ADB’s ordinary capital resources and $50 million syndicated parallel loans, with $30 million from the Export–Import Bank of China (CEXIM), and international cooperation and $20 million from the ILX Fund, an Amsterdam-based asset manager focused on supporting the Sustainable Development Goals in emerging markets.

ADB acted as the mandated lead arranger and bookrunner for the entire financing.

ADB Director General for Private Sector Operations Suzanne Gaboury said by providing access to finance and tailored advisory services, its partnership with LPBank will empower women entrepreneurs in Việt Nam to thrive and contribute to the country’s economic growth.

She went on to say that by working with development partners like the Export–Import Bank of China, ILX, and We-Fi, they aim to mobilise capital for private sector development that makes a meaningful difference to women-owned businesses in Việt Nam.

SMEs account for 40 per cent of Việt Nam’s gross domestic product and half of all employment. Access to commercial finance is a challenge, particularly for women borrowers who often face constraints such as lack of collateral, low financial literacy, higher risk perception by banks, and limited awareness among banks of the potential of the women’s market.

The financial package will help LPBank design new products and procedures to enhance its support to WSMEs. A 750,000 USD performance-based grant funded by We-Fi will incentivise LPBank to expand its services to female borrowers and implement advisory support services for WSMEs.

LPBank Vice Chairman Lê Minh Tâm said that supporting SME customers in accessing capital is always an important strategy that LPBank prioritises.

With this loan package, LPBank not only has more potential in providing effective financial solutions for customers but also shows the efforts in supporting the WSME, especially where they are in great need of capital to recover from the pandemic and to further to develop their business, he added. — VNS