VIB signed a contract with IFC to increase the total credit limit to 450 million USD

The cooperation aims to promote and strengthen financial resources for credit activities to buy and repair low-value housing.

According to the bank representative, the new 5-year loan worth 100 million USD from IFC has just been signed, increasing the total credit limit IFC provides toVIB to 450 million USD, including two loans worth 250 million USD in total and a trade finance limit of 200 million USD.

With this agreement, VIB will have additional financial resources to strengthen and promote credit activities for individual customers to borrow to buy or repair houses. Also within the scope of the agreement, VIB commits to spend at least 30 million USD (equivalent to 700 billion VND) to finance home purchases worth less than 55,600 USD (equivalent to 1.3 billion VND). This commitment also demonstrates VIB's support for the Government 's goals in removing difficulties for the real estate sector. Previously, in October 2022, this bank also completed the withdrawal of a 150 million USD loan from IFC with similar terms to support individuals to access home loans.

Mr. Le Quang Trung - Director of capital and foreign exchange at VIB (left) and IFC representative (right) at the loan signing ceremony. Photo: VIB

Mr. Trung added that in the context of the market being affected by economic fluctuations, VIB's continued signing of agreements with the International Finance Corporation (IFC) contributes to affirming and strengthening the long-term cooperative relationship between the two sides. The successful capital mobilization helps the bank increase financial resources in credit granting activities, promoting credit demand that has been slowing down in the real estate market since the beginning of the year.

Currently, VIB has achieved a retail ratio of up to 90% of the total credit portfolio, twice as high as the industry average. Of which, about half of the portfolio is used for home loans, construction and home repair.

VIB's retail portfolio also maintains a safe level with over 90% of loans having collateral and 100% of real estate collateral having full legal documents. The bank has a ROE of up to 30% and has remained stable for 3 consecutive years from 2020 to 2022.

VIB Bank. Photo: VIB

With the successfully mobilized capital, VIB will have more resources to continue expanding credit to serve the needs of retail customers, while optimizing profit margins during the potential growth period and continuing to maintain profitability in the top group of the industry.

VIB representative said that the bank has established a relationship with IFC through the Global Trade Finance Program (GTFP) since 2011. In more than 10 years of cooperation and development, VIB is currently a bank with a large GTFP limit, with active activities and 6 awards from IFC. Most recently in February 2022, the bank received the "Fastest Growing Bank" award in the program's trade finance activities in the East Asia and Pacific region. Last May, IFC also increased the trade finance limit, bringing VIB's limit to 200 million USD.

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