IFC invests a US$ 75 million convertible loan in SeABank

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 -- 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,IFCand 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.