IFC’s $307 million investment in VietinBank in 2011 has helped increase the bank’s reach into the Vietnamese small and medium enterprises market, supporting local job creation.
IFC’s commitment marked the first strategic investment by a foreign institution in a Vietnamese state-owned bank. IFC’s $125 million in subordinated debt and the $182 million in equity from IFC and IFC’s Capitalization Fund provided Vietnam’s third-largest bank with long-term capital and enabled it to leverage its nationwide network to offer greater support to small and medium enterprises.
We are also helping VietinBank align its risk management and governance policies with global standards and best practices and to move into new areas of lending, such as energy efficiency.
“IFC and the IFC Capitalization Fund’s financial and advisory support are helping our bank implement its expansion and modernization strategy,” says Pham Huy Hung, VietinBank’s Chairman.