Sacombank

completed

Sacombank is the second largest joint-stock banks in Vietnam. It offers comprehensive commercial banking services primarily to small and medium enterprises (SMEs) and individuals. HCMC accounts for about 60% of its loan portfolio, while the remaining 40% is spread out in other major cities and provinces of the country. IFC''s investment intends to help strengthen Sacombank''s capital base and expand its operational capabilities, as well as assist the bank in its ongoing effort to become a well-managed commercial bank operating according to international standards and best practices. The proposed IFC investment will be part of a planned major capital increase of Sacombank in 2002, which has been approved by the State bank of Vietnam. The project will promote private and foreign participation in Vietnam''s banking sector, enhance the access of Vietnamese private companies to bank financing, and introduce more competition in the banking industry. In addition to providing equity capital, IFC''s key contribution to Sacombank''s growth will be in the area of corporate governance and management capacity. This venture will represent IFC''s first investment in the emerging private banking sector in Vietnam. As such, it represents an opportunity for IFC to assist in the reform and modernization of the Vietnamese banking sector.