IFC and VPBank ink $50m financing deal
HAØ NOÄI IFC, a member of the World Bank Group, in partnership with Vieät Nam Prosperity Commercial Joint Stock Bank (VPBank) is extending a commodity financing facility of up to US$50 million to Taân Long Group Joint Stock Company in order to unlock further agri-financing opportunities in this highpotential sector.
This commodity financing support helps Tanâ Long Group, one of Vietä Nams leading traders in agricultural products, diversify procurement of agri-commodities. It is also part of IFCs Global Warehouse Finance Programme (GWFP) that increases available financing to agricultural producers and traders in the countries where agriculture plays an important role in the economy such as Vietä Nam.
Underpinning the deal is a 50:50 risk-sharing partnership between IFC and VPBank, with each assuming liability for up to $25 million on an unfunded basis covering half of every eligible transaction under the facility.
Diversifying trade finance products will help realise VPBanks strategy of becoming a leading bank in supporting enterprises over the next five years, with supporting local importers and exporters as a pillar, said Ñinh Vanê Nho, VPBanks deputy chief executive officer cum head of Corporate Banking Division.
This partnership is expected to have a significant development impact on the animal protein value chain in Vieät Nam an increasingly important sector in the country as it will enable Taân Long Group to procure, store and distribute raw materials more effectively and efficiently.
Hanwha Life to boost charter capital by $131m
HCM CITY South Koreas Hanwha Life Insurance Company (Vieät Nam) on Wednesday announced plans to increase its charter capital by VNÑ3 trillion (US$131 million) to VNÑ4.89 trillion ($214 million), becoming one of the largest life insurers in the country.
The Ministry of Finance has given approval.
The company said the capital injection strongly demonstrated its long-term commitment to the Vietnamese market and would provide a solid financial foundation for its development efforts.
Back Jong Kook, the companys CEO and chairman, said financial strength is an important criterion for every life insurance company.
Founded in 2009, Hanwha Vietnam has achieved impressive growth. In the last five years its new premium revenue growth has averaged 41 per cent, 10 percentage points higher than the industry average. Revenues grew at 54 per cent, 24 percentage points higher. The company has more than 120 customer service centres and 40,000 dedicated financial consultants.
Vónh Phuùc metal factory under construction