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Norfund grants US$30 million convertible loan to SeABank
HANOI, Vietnam, June 20, 2024 /PRNewswire/ — Norfund, the Norwegian Investment Fund for Developing Countries, has decided to invest US$30 million to Southeast Asia Commercial Joint Stock Bank (SeABank, stock code: SSB) in form of a convertible loan. The loan can be converted into common shares of SeABank within 4-year term, aiming at providing additional capital to support retail banking customers, small and medium enterprises (SMEs) and micro-enterprises in Vietnam.
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 reducing poverty.
Ms. Le Thu Thuy – Vice Chairwoman of the BOD, SeABank shares: “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.”
Ms. Fay Chetnakarnkul – Regional Director (Asia), Norfund said: “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.”
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.
Previously, SeABank has continuously received foreign investments totaling nearly US$600 million from prestigious institutions like IFC, DFC, etc. These aim to accelerate the Bank’s sustainable development strategies focusing on: SMEs financial access improvements, ESG practices application, and climate change mitigation. International funding, together with available capacity, has enabled SeABank to deliver flexible financial solutions and strongly support SMEs, especially 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.
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