Norfund commits $30m to SeABank to boost SME and micro-enterprise support in Vietnam
Norfund, the Norwegian Investment Fund for Developing Countries, has announced a significant investment of US$30 million in the form of a convertible loan to the Southeast Asia Commercial Joint Stock Bank (SeABank), furthering efforts to support economic growth in Vietnam. This convertible loan, which can be converted into common shares within four years, underscores a strategic push to empower small and medium enterprises (SMEs) and micro-enterprises in the region.
The loan is part of Norfund’s broader mission, funded by the Norwegian government, to stimulate job creation and sustainable development in emerging markets. By providing additional capital, Norfund aims to enhance SeABank’s ability to serve its retail banking customers and SMEs more effectively, thereby promoting financial inclusion and economic development in Vietnam.
SeABank has established a robust track record of supporting SMEs and retail customers, focusing on sustainable financial solutions. Ms. Le Thu Thuy, Vice Chairwoman of the Board of Directors at SeABank, emphasized the loan’s alignment with the bank’s long-term strategy to foster sustainable development and improve financial access for its clients.
Ms. Fay Chetnakarnkul, Regional Director for Asia at Norfund, highlighted the investment as a crucial step toward enhancing financial inclusion in Vietnam. The partnership between Norfund and SeABank is expected to act as a catalyst, providing vital financial resources to underserved SMEs and retail customers, thus supporting their long-term capital needs.
The investment is part of a larger narrative where SeABank has attracted nearly US$600 million in foreign investments from prominent institutions like the International Finance Corporation (IFC) and the U.S. International Development Finance Corporation (DFC). These funds have been pivotal in advancing SeABank’s commitment to environmental, social, and governance (ESG) practices, particularly in the areas of climate change mitigation and green financing.
SeABank’s initiatives include offering green mortgages and prioritizing projects that focus on climate change mitigation, reflecting a deep commitment to positive socio-economic and environmental impacts. This strategic focus not only supports local communities but also aligns with global efforts toward sustainable development.
Norfund’s investment marks a significant vote of confidence in SeABank’s operational efficiencies and its strategic direction, particularly in enhancing service offerings to women-owned SMEs and advancing green initiatives. As SeABank continues to expand its services and impact, it stands as a model for integrating financial performance with sustainable development goals.