LPBank successfully mobilized 80 million USD from ADB

LPBank has just announced the successful signing of a syndicated loan worth 80 million USD from the Asian Development Bank (ADB) to improve access to finance for women-owned small and medium-sized enterprises (WSME project) in Vietnam. The signing ceremony took place on June 12, 2024, in Hanoi with the participation of representatives of LPBank, ADB and related financial institutions.

Mr. Vu Quoc Khanh - Permanent Deputy General Director of LPBank (sitting in the middle) with ADB representatives and related parties signed the agreement.

Under the agreement, LPBank will receive a direct loan of USD 80 million from ADB. This is a three-year, unsecured, medium-term syndicated loan to boost financing for the Women-led Small and Medium Enterprises Promotion Project (WSME Project). The loan also comes with a USD 750,000 technical assistance package funded by the Women Entrepreneurs Finance Initiative (We-Fi). With this aid package, LPBank will better meet the needs of WSME customers through modern, convenient products, initiatives and services. Sharing at the event, Mr. Le Minh Tam - Standing Vice Chairman of LPBank's Board of Directors said: "Small and medium-sized enterprises are a strategic customer segment, supporting small and medium-sized enterprises to access capital is always an important priority of LPBank. With this loan package, LPBank not only has more potential to deploy effective financial solutions for customers, but also shows the efforts of the parties in increasing support for the WSME Project, especially in the context of businesses having a great need for capital to recover and develop production and business".

Mr. Le Minh Tam - Permanent Vice Chairman of LPBank's Board of Directors spoke at the event.

Ms. Suzanne Gaboury, ADB Director General for the Private Sector, emphasized that this project is an important first step in enhancing the capacity to support small and medium-sized enterprises (SMEs) in Vietnam, especially those owned by women. “Today’s event marks the beginning of ADB’s cooperation with LPBank in the field of finance and capital. Through this cooperation, we hope to be able to provide appropriate capital and advisory services to SMEs, thereby accompanying and supporting them to participate and contribute to the country’s economic development,” Ms. Suzanne Gaboury shared.

Ms. Suzanne Gaboury, ADB Director General for Private Sector, shared at the event.

The successful mobilization of a syndicated loan from ADB demonstrates the trust and positive evaluation of international financial institutions for LPBank. This also affirms LPBank's commitment to supporting small and medium enterprises in Vietnam to access flexible, safe and effective loan sources.

The successful signing of a syndicated loan worth 80 million USD from ADB affirms the trust and appreciation from international financial institutions for LPBank.

In parallel with the activities of upgrading and expanding the effective financial ecosystem, LPBank focuses on building policies to support businesses in accessing loan sources with preferential interest rates. Since the beginning of 2024, LPBank has simultaneously deployed many loan funding packages with large limits such as: "Super fast loan - Accelerate business" program for micro enterprises with interest rates from only 6.5%/year; "Preferential interest rate - Open trade" program to support import-export enterprises, with a total limit of up to 5,000 billion VND, preferential USD loan interest rates from only 4%/year and preferential VND loan interest rates from only 6.15%/year. With this solution, LPBank continues to demonstrate the role of the bank in accompanying businesses to reduce pressure on capital sources, expand access to loans, optimize cash flow to exploit new business opportunities, contributing to the economic and social development of the country.

LPBank is one of 15 Vietnamese banks in the Top 500 Banks with the highest global brand value in 2024, announced by the world's leading brand valuation consultancy Brand Finance. Last May, LPBank was announced by VIS Rating as having a long-term issuer credit rating of A+ with a "stable" outlook. VIS Rating assessed LPBank's asset quality as outstanding thanks to its ability to control the bad debt ratio, while assessing LPBank's profitability as good and expecting stable profitability in the next 12-18 months.

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