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The grant, part of IFC’s Global Trade Finance Programme (GTFP), will help TPBank avoid risk coverage of payment in granting trade financing to local companies and access to global network to promote its trade grant activity.
Accordingly, the network helps promote transactions in challenging markets, boost competitive financing, and build correspondent bank relationships with new institutions at low risk.
“The trade line not only helps TPBank meet trade finance demand from small and medium enterprises (SMEs) which is one of TPBank’s target client groups, but also support the bank’s shareholders and management in consolidating and expanding its business operation as well as serving more SMEs, households and individuals, ” said Nguyen Hung, TPBank CEO.
“Furthermore, being a part of IFC’s GTFP will open opportunities for TPBank to extend the relation with wider range of correspondent banks globally, and make it easier for us and our clients to complete international transactions,” Hung added.
“The IFC’s trade grant will enable SMEs to increase its share of global trade. Expanding trade flows is essential for SMEs growth and will help boost the economy, generate foreign exchange, and create jobs,” said Kyle Kelhofer, IFC’s country manager for Vietnam, Cambodia and Laos.
“The investment is also a testament of IFC’s continued commitment to support the strengthening of Vietnam’s banking sector. We look forward to further expanding our partnership with TPBank, as well as our entire investment and advisory programme in the Vietnam financial sector, to promote the country’s economic growth and integration,” Kyle Kelhofer added..
Established in 2005, IFC’s GTFP supports trade in emerging markets by providing partial or full guarantees for individual trade transactions backed by IFC’s triple-A rating.
As of now, it has provided over 18,000 trade finance guarantees with the total trade transaction value of $30 billion and has attracted more than 500 bank partners in nearly 100 emerging countries.
In Vietnam, since 2007, more than 950 guarantees have been issued by participating banks to support $4.2 billion worth of trade finance, making Vietnam one of IFC’s top trade finance markets.