OPEC Fund’s $40 mln loan for Maritime Bank to support SMEs

The OPEC Fund for International Development (OFID) is providing a $40 million loan to Vietnam's Maritime Bank for on-lending to small and medium-sized enterprises.

The loan will support at least 80 local businesses, providing financing to meet critical needs to grow their businesses, OFID said. Meanwhile, the Vietnamese lender, or MSB, will benefit from a growing portfolio of clients.

“SMEs make up a majority of businesses and provide more than half of overall employment in Vietnam. Systemic banks such as MSB are critical to providing financing to support local businesses and increase their access to global markets, promoting sustainable economic development and job creation,” Abdulhamid Alkhalifa, CEO of OFID, said in a March 10 release.

Nguyen Hoang Linh, CEO of MSB, said, “The agreement affirms the partnership between MSB and the OPEC Fund and the parties’ efforts to promote financial access for SME clients, who have a high demand for capital to resume dynamic growth after the pandemic.”

Vietnam has more than 500,000 private firms, with more than 95% being micro and small enterprises, according to the Vietnamese Ministry of Finance. Access to credit remains a major concern for these companies as their integration in global supply chains and finance was disrupted by the pandemic.

OFID was established in January 1976 by the then 13 member countries of the Organization of the Petroleum Exporting Countries (OPEC), including the United Arab Emirates. It is the development finance institution established as an aid channel to developing countries. The fund is shortly known as the OPEC Fund.

MSB was set up in 1991 and now operates more than 60 branches and over 200 transaction offices across Vietnam. It is listed on the Ho Chi Minh Stock Exchange as MSB.

As of the end of December 2022, the lender’s total assets were around VND213 trillion (over $9 billion). Its current charter capital is VND20 trillion (over $848 million). MSB is one of the most effective medium-sized credit institutions in Vietnam.

The bank’s long-term deposit and issuer ratings were “B1” by international rating agency Moody’s in September 2022 and outlook rating was “stable” over the next 12-18 months.