Vietnam pawn chain F88 to launch loan package for businesswomen in early 2024

F88 Business Joint Stock Company (F88) will cooperate with leading debt provider Lendable and Australian Development Investments (ADI) to provide loans for women who own small businesses, starting early 2024.

In a release, F88 said it has been selected as one of the investee companies of Lendable to receive technical assistance from ADI, formerly EMIIF.

The technical assistance aims to facilitate various initiatives of F88 to enhance gender equity and inclusion within the company, resulting in improved women’s representation in leadership roles, gender responsive products and services, and strong business performance.

This marks the inaugural collaboration between F88 and international partners to implement initiatives aimed at benefiting both employees and customers, including entrepreneurs.

In order to bolster these endeavors, ADI has approved A$43,000 ($29,190 million) for the Vietnam-based lender to design and test loan products that are suitable for female customers.

These loans are designed for women in Vietnam aged 20 to 55 who own small businesses like shops, cafes, and retail stores.

“Eligible borrowers must have a stable business location and aspirations to expand their business. The loan has a repayment period of up to 18 months and attractive low-interest rates,” it said.

For F88, the objective of this new loan product goes beyond profit. It aims to offer a financial solution that enables women to make financial decisions for their small enterprises and improve their management and leadership skills. Women borrowers can also build self-confidence and esteem, and assets towards financial independence, it added.

Majdie Hordern, First Secretary, Development Cooperation, Australian Embassy in Hanoi, said: “The Australian Government is proud to deploy technical assistance through Australian Development Investments to support a Lendable portfolio company and create pathways for women entrepreneurs to access finance. Developing products that suit women business owners is not just the right thing to do, but the smart thing.

“I look forward to seeing how F88 and other lenders expand their client base by tailoring products for the thousands of women-owned businesses in Vietnam.”

In the upcoming months, F88 is set to roll out a series of training programs for all employees aimed at raising gender sensitivity and preventing gender based discrimination and harassment. There will be initiatives that go beyond job-specific skills, focusing on developing management skills and various soft skills.

F88 will further enhance the potential of its female managers and executives. In 2024, the company will take proactive steps to amend specific policies, providing needed interventions, such as mentoring, coaching and training for female employees to advance in their careers.

Established in 2013, F88 is a top-tier chain of financial convenience stores in Vietnam. Specializing in personal financial services, the company offers a range of services including pawn loans, insurance distribution, and various other convenient products. F88 primarily caters to individuals underserved by conventional banks. By 2025, F88 aims to become Vietnam's leading and most adored personal financial service group. The mission of F88 is to revolutionize financial accessibility, enriching people's lives through prompt, uncomplicated, and transparent services.

In the third quarter of 2023, F88 successfully issued 2,000 bonds with a face value of VND100 million ($4,130) per bond, for a total value of VND200 billion ($8.26 million), on the Hanoi Stock Exchange. The bonds have a maturity of 12 months, with a maturity date of August 14, 2024, and a coupon rate of 12% per year. This is the only bond tranche that F88 issued in the third quarter of 2023.

In its latest surveillance in mid-December, Fiin Ratings, a leading credit rating agency in Vietnam, affirmed F88’s credit rating at BBB-, based on six factors: capital structure and financial leverage; risk management activities; competitive position; profitability; capital mobilization capacity; and liquidity.