The World Bank’s International Finance Corporation (IFC) and other financial institutions have increased a loan package for Hanoi-based Southeast Asia Commercial Joint Stock Bank (SeABank) to US$220 million. The funds will be used for lending to small and women-owned businesses in Vietnam, as well as to promote climate finance.

SeABank and IFC signed in June 2021 a US$150 million financing package, comprising US$80 million from IFC’s own account, US$50 million from international lenders, and a US$20 million trade finance line.

The Vietnamese bank announced on January 18 that IFC and international lenders have decided to provide another US$70 million, raising the total credit and trade finance line to US$220 million.

The fresh funding comes from IFC, Banque Internationale de Commerce-BRED, BlueOrchard Microfinance Fund, KasikornBank, the OPEC Fund for International Development, and responsAbility Investments.

IFC says climate finance is a new area in Vietnam with climate investment opportunity estimated at US$753 billion between 2016 and 2030 as the Southeast Asian country aims to reduce greenhouse gas emissions by 9% by 2030 to mitigate the impact of climate change. IFC has provided US$30 million, which SeABank will allocate for climate-friendly projects.