Heaptalk, Jakarta — Norfund, the Norwegian Investment Fund for Developing Countries, invests US$30 million to SeABank in SeABank in the form of a convertible loan. The loan can be converted into common shares of this banking company within the 4-year term, aiming at providing additional capital to support retail banking customers, SMEs, and micro-enterprises in Vietnam.
The cooperation aims to provide SMEs with additional financial sources to fulfill their long-term capital demands. The Bank also has additional capital for retail lending, considering the increasing financial needs of this group.
Vice Chairwoman of the BOD of SeABank, Le Thu Thuy, delivered, “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,”
Norfund is an investment fund owned and funded by Norwegian Government that works to create jobs and improve lives by investing in businesses in developing countries that drive sustainable development.
Norfund is fully funded by the Norwegian International Development Assistance budget, Government’s most important tool for strengthening the private sector in developing countries and for the Norwegian Government that works to create jobs and improve lives by investing in businesses in developing countries that drive sustainable development.
Norfund is fully funded by the Norwegian International Development Assistance budget, the Government’s most important tool for strengthening the private sector in developing countries and reducing poverty.
The Regional Director Asia of Norfund, Fay Chetnakarnkul, affirmed, “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.”
Previously, SeABank has continuously received foreign investments totaling nearly US$600 million from prestigious institutions like IFC and DFC, aiming to accelerate the Bank’s sustainable development strategies focusing on:
- SMEs’ financial access improvements
- ESG practices application
- Climate change mitigation
International funding, together with available capacity, has enabled SeABank to deliver flexible financial solutions and strongly support SMEs, particularly women-owned SMEs, in capital use optimization. Besides, SeABank prioritizes disbursements for green credit and climate change mitigation projects as well as green mortgages for individual customers buying houses with green-building certificates, thereby posing positive impacts on the socio-economy and environment.
Norfund’s investment has demonstrated the increasing trust, affirming SeABank’s reputation, operational efficiency, and capital utilization efficiency. This also helps SeABank’s corporate customers improve capacity and promote key business areas effectively.
