The financing comprises a $30 million loan from ADB’s ordinary capital resources and $50 million syndicated parallel loans, with $30 million from the Export–Import Bank of China, a state-owned bank dedicated to promoting the People’s Republic of China’s trade, investment, and international cooperation and $20 million from the ILX Fund, an Amsterdam-based asset manager focused on supporting the Sustainable Development Goals in emerging markets. ADB acted as the mandated lead arranger and bookrunner for the entire financing.

“By providing access to finance and tailored advisory services, our partnership with LPBank will empower women entrepreneurs in Vietnam to thrive and contribute to the country’s economic growth,” said ADB director general for private sector operations Suzanne Gaboury. “Working with development partners like the Export–Import Bank of China, ILX, and We-Fi, we aim to mobilise capital for private sector development that makes a meaningful difference to women-owned businesses in Vietnam.”

SMEs account for 40 per cent of Vietnam’s gross domestic product and half of all employment. Access to commercial finance is a challenge, particularly for women borrowers who often face constraints such as lack of collateral, low financial literacy, higher risk perception by banks, and limited awareness among banks of the potential of the women’s market.

The financial package will help LPBank design new products and procedures to enhance its support to WSMEs. A $750,000 performance-based grant funded by We-Fi will incentivise LPBank to expand its services to female borrowers and implement advisory support services for WSMEs, ADB said in a press release.

“Supporting SME customers in accessing capital is always an important strategy that LPBank prioritises. With this loan package, LPBank not only has more potential in providing effective financial solutions for customers but also shows the efforts in supporting the WSME, especially where they are in great need of capital to recover from the pandemic and to further to develop their business,” said LPBank vice-chairman Le Minh Tam.

LPBank is one of the leading private joint-stock banks in Vietnam, with robust digital platforms that help meet the needs of its retail and SME customers using innovative and customised products. LPBank has the largest physical network among privately owned Vietnamese banks, with a nationwide network of 566 bank branches and transaction offices, as well as access to 513 postal transaction offices. This extensive network allows LPBank to reach customers in rural areas where other banks have limited presence.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.

Fibre2Fashion News Desk (RR)