International Finance Corporation (IFC) – invested a US$75 million convertible loan in Southeast Asia Commercial Joint Stock Bank (SeABank, stock code SSB). IFC will have an option to convert its loan to common shares of SeABank within 5 years.
HANOI, Vietnam, Oct. 14, 2022 /PRNewswire/ -- IFC's investment is aimed at impulsing SeABanks's development strategies and increasing access to finance for SMEs and women-owned SMEs. Specifically, in line with IFC's approach to addressing climate risks, SeABank will also commit to not funding new coal-related activities. This will help contribute to Vietnam's climate targets including phasing out coal-fueled power generation by 2040 and achieving net zero carbon emissions by 2050. This commitment by SeABank will be a condition for IFC's consideration to convert this loan to common shares within the next five years.
IFC invests a US$ 75 million convertible loan in SeABank
Before this, in 2021, IFC and 5 international investment funds including Banque Internationale de Commerce-BRED, BlueOrchard Microfinance Fund, KASIKORNBANK PCL, OPEC Fund for International Development, and responsibility Investments AG provided a financial package of US$ 220 million to SeABank for purposes of increasing financial assistance to SMEs, especially women-owned businesses and expanding climate finance. The new US$ 75 million convertible loan shows IFC's acknowledgment of SeABank's performance, credibility, and commitment to expanding its SME reach-out and addressing climate challenges in Vietnam.
Being an existing client of IFC, SeABank has adopted an environmental and social management system to manage E&S risks of SMEs lending and climate financing activities. With IFC support under this investment, SeABank will, among others, continue enhancing its E&S practices and performance to align with the Bank's strategy and its stakeholders' expectations, including applying IFC Performance Standards to higher E&S risk activities.
The IFC PSs is an international benchmark for identifying and managing E&S risk in 8 areas including Risk Management, Labor, Resource Efficiency, Community, Land Resettlement, Biodiversity, Indigenous People, and Cultural Heritage.
