The International Finance Corporation (IFC) is supplying a facility of up to US$10mn to Vietnamese bank TienPhong Commercial Joint Stock Bank (TPBank) as is part of its global trade finance programme (GTFP), to support local small and medium enterprises (SMEs) and help boost international trade.

The trade finance programme will provide TPBank with risk coverage in granting trade financing to local companies, and access to a global network to support its trade finance business’s growth. This helps promote transactions in challenging markets, boost competitive financing, and build correspondent bank relationships with new institutions at low risk.

“This trade line helps extend our capacity to meet trade finance demand from small and medium enterprises, one of our main target client groups,” says Nguyen Hung, TPBank’s CEO. “Being part of the IFC’s GTFP will help us get recognised by a wider range of correspondent banks globally, and make it easier for us and our clients to complete international transactions.”

“This investment is also a testament of the IFC’s continued commitment to support the strengthening of Vietnam’s banking sector,” adds Kyle Kelhofer, IFC country manager for Vietnam, Cambodia and Laos. “We look forward to further expanding our partnership with TPBank, as well as our entire investment and advisory program in the Vietnam financial sector, to support the country’s economic growth and integration.”

The IFC’s GTFP supports trade in emerging markets by providing partial or full guarantees for individual trade transactions backed by its triple-A rating. The trade finance programme includes more than 500 bank partners in nearly 100 emerging-market countries.