HDBank signs MOU with IFC to build supply chain finance portfolio

HDBank hopes to build a supply chain finance portfolio of $1b over the next three years.

The Ho Chi Minh City Development Joint Stock Commercial Bank (HDBank) and the International Finance Corporation (IFC) have signed a memorandum of understanding (MOU) to support small and medium enterprises (SMEs).

According to a press release, the partnership will see the two help SMEs scale up finance and participate in global supply chains, including financing the high-tech agricultural chain.

This cooperation is expected to help HDBank build its supply chain finance (SCF) portfolio of $1b in the next 3 years. 

IFC will reportedly assist HDBank in designing a SCF strategy for the agricultural sector, broaden its SCF products – especially supplier and distributor financing – and bring onboard anchor firms along with their suppliers and distributors, among others.

Previously, on 14 April 2022, IFC granted HDBank a trade finance limit of  $40m within the framework of the Global Trade Finance Program (GTFP) to enhance payment risk guarantee capacity in trade finance for domestic enterprises, mainly SMEs.

Earlier in 2021, IFC provided a long-term loan of $70m to HDBank to support the renewable energy business. 

As of this new partnership, the total value of commitments and cooperation between IFC and HDBank has reached more than $200m.