IFC’s Investment in SeABank supports Lower and Middle-income Home-Buyers in Vietnam

With this investment, SeABank expects to at least double the number of lower and mid-end housing loans by 2026 and to create thousands of new jobs in construction and other related sectors.

With a rapid annual urbanization rate of 3 percent, half of Vietnamese population - about 50 million people—is expected to live in urban areas by 2040. This creates the need for an estimated 374,000 additional housing units every year. However, the limited availability of long-term funding has restricted the ability of domestic banks to grow their long tenor lending book, including housing loans. This makes access to housing finance especially challenging for lower and middle-income homebuyers, who need longer-term funding due to low level of incomes. 
 

“SeABank is honored to once again receive the trust and investment of US$100 million to promote housing lending, which increases the total IFC’s investment in the bank to nearly US$400 million,” said Le Thu Thuy, Vice Chairwoman of the Board of Directors of SeABank. “The current housing demand of lower and middle-income families in Vietnam is considerably high, but their access to finance remains limited. IFC's funding will provide SeABank with stable long-term capital and help us strengthen our lending portfolio related to affordable housing, therefore, promoting access to housing finance, expanding market and generating economic growth in Vietnam. At the same time, this contributed to enhance SeABank's competitive advantage in domestic banking industry.”
IFC will also advise SeABank to develop dedicated housing finance products to better serve lower and middle-income people - a key priority for the government of Vietnam. IFC has, since 2021, advised the bank in the areas of climate finance, the Banking on Women program, and environmental, social, and corporate governance (ESG).

“Limited housing supply along with rising demand has aggravated the housing shortage for lower and middle-income earners in Vietnam’s cities, leaving many people simply unable to access the funds they need to buy a home,” said Thomas Jacobs, IFC Country Manager for Vietnam, Cambodia and Lao PDR. “By supporting a leading player, IFC will help address the shortage of affordable housing financing solutions and send a positive signal to the market, highlighting the viability of catering to this untapped market. We are optimistic this will have a catalytic effect on other banks, promoting a more competitive sector that’s better positioned to meet Vietnam’s growing housing needs, boosting the economy and delivering benefits for people.”

IFC aims to increase the availability of long-term funds for mortgage lending in emerging markets, allowing access to better quality housing, promoting inclusive development, and creating jobs. In Vietnam, IFC has worked with both housing developers and banks to promote the availability of both affordable housing and housing finance that lower and middle-income households can access.  

With the investment, IFC and SeABank are providing funds to lend to the Bank’s housing portfolio – this is in line with IFC’s strategy. It will help address the lack of mortgage finance for affordable housing in the country, particularly for the middle- and lower-income segments. The newly approved senior loan further strengthened IFC's partnership with SeABank’s - performance, credibility, effectiveness of the Bank’s on-going projects targeting SMEs and climate issues. 
SeABank was granted US$500 million by IFC, DFC and other investors supporting the SMEs, particularly women-owned, and expanding climate finance. By adding the US$100 million of IFC’s investment, SeABank reached a total of US$600 million of credit packages from reputable international financial institutions to better implement sustainable economic development projects in Vietnam.