HANOI, Vietnam, June 17, 2021 /PRNewswire/ -- The Asian Development Bank (ADB) has stated that it would increase the trade finance limit to USD 30 million while maintaining the USD-5-million limit of 6-month-tenor revolving loan for Southeast Asia Commercial Joint Stock Bank (SeABank, stock code SSB).
ADB increases credit limit for SeABank to US$30 million
In November 2020, SeABank officially joined the Asian Development Bank's (ADB) Trade Finance Program (TFP) to support trade activities in Vietnam via loans and other financial instruments with limits of up to USD 18 million for guarantees and $5 million for revolving loans, allowing the Bank to approach and establish transaction relationships with many banks around the world.
After nearly 8 months from signing the cooperation agreement, ADB agreed to enhance the guarantee limit for commercial transactions with a total transaction value of USD 30 million at a given point of time and continued to grant SeABank a USD 5 million revolving loan limit. The increased guarantee limit reflects ADB's confidence and respect for SeABank in terms of reputation, transparency and capital efficiency, as well as its commitment to long-term growth. As a result, SeABank's strength in the sector of international payment and trade financing will be affirmed and enhanced, allowing the bank to approach and form transaction partnerships with more banks across the world.
SeABank is committed to utilize the fund in the most efficient manner to assist Vietnamese businesses, especially SMEs and their supply chains, in order to contribute to economic growth and job creation for Vietnamese workers.
The TFP program combines product knowledge with financial solutions, such as quantitative research on trade finance market gaps, initiatives to strengthen women's roles in the banking sector, environmental protection measures, and anti-crime initiatives through global financial system transparency.
SeABank has satisfied the ADB's requirements set out for TFP program, including: effective and healthy operations, sound risk management, transparent information, clear development direction, and the leadership with strategic vision.
Moody's, one of the three most reputable credit rating agencies in the world, had previously upgraded SeABank's outlook from Stable to Positive while keeping SeABank's credit rating at B1 for the third year in a row. In addition, the bank has been designated as one of 17 credit institutions with significant impact in the financial sector for the year 2021.
