The Netherlands Development Finance Company (FMO), a Dutch public-private organization that promotes entrepreneurship in developing countries, recently arranged a 10-year subordinated syndicated loan facility worth USD 150 million for Sacombank, a Vietnamese commercial bank. Lenders of the facility include FMO and four other European development banks: Norwegian Investment Fund for Developing Countries (Norfund); DEG (Deutsche Investitions und Entwicklungsgesellschaft), a member of Germany’s KfW Bank; Belgian Investment Company for Developing Countries (BIO); and Proparco, a development finance organization that is partly owned by Agence Francaise de Developpement (AFD).
The loan will allow Sacombank to meet the increasing demands of its retail customers and Vietnam’s small and medium-sized enterprises (SMEs). Additionally, the lenders will also provide advisory support to Sacombank in the areas of corporate governance and social and environmental risk management. For the fiscal year ended December 31, 2010, Sacombank reported total assets of VND 152 trillion (USD 7.2 billion).
By Julie Moksim, Research Associate
About the Netherlands Development Finance Company: Founded as a partnership between the Dutch government and the private sector in 1970, the Netherlands Development Finance Company (FMO) aims to encourage development by promoting entrepreneurship in developing economies. FMO has an investment portfolio of EUR 5.04 billion (the equivalent of USD 6.5 billion) as of 2009. Headquartered in the Netherlands, FMO operates in Africa, Asia, Eastern Europe and Latin America.
About Sacombank: Sacombank is a Vietnamese commercial bank that was established in 1991 and also operates in Laos and Cambodia. It has been listed on Vietnam’s stock exchange since 2006 and has received funds from international organizations such as the International Finance Corporation (IFC), the Netherlands Development Finance Company (FMO) and Asian Development Bank (ADB) to support small and medium-sized enterprises. For the fiscal year ended December 31, 2010, Sacombank reported total assets of VND 152 trillion (USD 7.2 billion).
Sources and Additional Resources:
Netherlands Development Finance Company (FMO) Press Release: “FMO arranges unprecedented loan for Sacombank, boosting SME sector in Vietnam”, March 30, 2011, http://www.fmo.nl/smartsite.dws?id=16432
MicroCapital.org Brief, December 21, 2010: Netherlands Development Finance Company (FMO) Investing $7m in Regional MSME Investment Fund for Sub-Saharan Africa SA (REGMIFA), https://www.microcapital.org/microcapital-brief-netherlands-development-f…
MicroCapital’s Microfinance Universe Profile: Netherlands Development Finance Company
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Net…
MicroCapital’s Microfinance Universe Profile: Sacombank
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Sac…
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