News
IFC doubles trade finance limit for SeABank to US$40 million
08/03/2024
International Finance Corporation (IFC) officially increased the trade finance limit for Southeast Asia Commercial Joint Stock Bank (SeABank, stock code SSB) to US$40 million under the Global Trade Finance program (GTFP). With this new trade finance limit, IFC's total investment in SeABank reached nearly US$400 million.
IFC's GTFP offers confirming banks guarantees covering payment risk on banks in emerging markets, including Vietnam, for trade related transactions. SeABank officially joined IFC's GTFP in 2021 with an initial trade finance limit of US$20 million. Since joining the program, SeABank has continuously developed its global partnership network while promoting trade growth for domestic businesses.
Over the past two years, by utilizing capital from the program, SeABank has provided maximum and effective support to small and medium-sized enterprises (SMEs), especially women-owned businesses, in the efforts to narrow the financial gap. In 2024, IFC’s trade finance limit for SeABank is doubled from the initial one to US$40 million.
Previously in 2023, SeABank had its trade finance limit increased to US$60 million by the Asian Development Bank (ADB). The fact that IFC and ADB continuously increase trade finance limits for SeABank demonstrates the trust and recognition for the Bank’s capacity, effective utilization of capital, and sustainable growth rate. It also affirms SeABank's strength in terms of international payments and trade finance, helping the bank access and establish transaction relationships with more global banks, promoting large-scale trade financing activities, enhancing SeABank's brand value and position both domestically and internationally.
In addition to trade finance, IFC has been investing in SeABank to support development strategies and facilitate financial access for SMEs, including women-owned businesses. Meanwhile, IFC and SeABank also promote the application of the best international standards and practices in environmental and social risk management.
With this new limit, the total invested amount by IFC and 5 international investment funds including Banque Internationale de Commerce-BRED, BlueOrchard Microfinance Fund, KASIKORNBANK PCL, OPEC and ResponsAbility Investments AG in SeABank reaches nearly US$400 million and is expected to increase in the upcoming period.
