IFC seeks to invest $10 mln in Vietnam-focused private equity firm ABBPE

World Bank Group investment arm IFC is considering a proposed investment of $10 million in Vietnam-focused ABBPE Capital Management Pte Ltd.

This proposal, under IFC’s SME Ventures Program, is for ABB II, the second fund of the Singapore-headquartered private equity firm, an IFC disclosure on Tuesday shows.

The target size of ABB II is $100 million, the disclosure says, adding that the second fund will also invest primarily in Vietnam.

IFC notes that its $10 million proposed investment does not exceed 20% of total commitments.

The project will benefit from IFC’s Advisory Services through technical assistance to both the fund manager (ABBPE, founded in 2013) and portfolio companies, the institution says.

In June, IFC started to make two new investments in Vietnam’s retail and agribusiness sectors to help strengthen the value chain and support food security in the country.

The first is a $40 million commodity-backed warehouse finance facility for agricultural firm TTC AgriS, part of the HCMC-based conglomerate TTC Group. This investment is a partnership between IFC and Japanese lender Sumitomo Mitsui Banking Corporation (SMBC).

The second is IFC’s $20 million investment in CVS, a subsidiary of Vietnam’s Son Kim Retail Corp., to help expand the retail network of GS25 Vietnam, a convenience store chain.