Photo: CPV
The revolving credit facility will enhance SHB’s capacity to provide trade-related loans to its clients, including for pre-export finance of agriculture products, garments, and electronics for export to markets such as the People’s Republic of China, Japan, and Singapore.
“We are pleased to work with SHB to increase support to companies, including small- and medium-sized businesses. More support for trade means more economic growth and more job creation,” said Eric Sidgwick, ADB Country Director for Viet Nam.
SHB became a partner bank in ADB’s TFP in early 2016. In less than 12 months, TFP has supported a total of 25 SHB transactions worth over USD160 million. The revolving credit facility is TFP’s second agreement with SHB.
“Participating in TFP under RCA helps diversify our trade finance products and services. We strongly believe that the partnership with ADB in this program will lead to more future opportunities of cooperation between the two institutions," said SHB CEO Nguyen Van Le.
The TFP has been operating in Viet Nam since 2009 and currently works with 11 local partner banks. To date, the program has conducted 5,262 transactions, supporting USD7.8 billion in trade in Viet Nam—mostly benefitting small- and medium-sized enterprises.
The ADB TFP, backed by ADB's AAA credit rating, provides guarantees and loans to over 200 partner banks to support trade, enabling more companies throughout Asia to engage in import and export activities.
With dedicated trade finance specialists and a 24-hour response time, the program has established itself as a key partner in the international trade community, providing fast, reliable, and responsive support to fill gaps in the region’s most challenging markets.
TFP complements its financial support with a regular series of workshops and seminars to increase knowledge and expertise in trade finance products and operations, risk management, and fraud prevention.
Since 2009, TFP has supported more than 9,200 small and medium-sized businesses across developing Asia—through over 13,000 transactions valued at over USD25.5 billion—in sectors ranging from commodities and capital goods, to medical supplies and consumer goods./.