International Finance Corporation (IFC
), The World Bank’s private lending arm, has entered TienPhong Commercial Bank (TPBank
) by acquiring a 4.999% stake in the Hanoi
-based lender for 403 billion dong ($18.3 billion).
The investment will help the bank boost its loan services, expand its retail and small business reach as well as strengthen corporate governance, the bank said in a press release.
TPBank joined IFC’s Global Trade Finance Programmed in December 2015 with an initial trade finance facility of $10 million. IFC has recently increased its trade exposure to $30 million, based on active utilization of the lender. To date, IFC has supported $40 million worth of trade transactions processed by TPBank for Vietnamese importers and exporters.
TPBank is a medium-sized bank in Vietnam with total assets reaching 83.2 trillion dong ($3.7 billion) as of mid-2016. Its registered capital will stand at 5.84 trillion dong ($261.62 million) after new shares are issued to IFC.
With the stake purchase, IFC has become the sixth major shareholders in TPBank. The other five largest stakeholders of the banks are Doji Gold and Germs Group, FPT Corp, MobiFone Corporations, Vietnam National Reinsurance Corporation and SBI Ven Financial Group Holding Singapore Pte.
Besides TPBank, IFC now holds a 10% stake at An Binh Bank (ABBank) and an 8% stake in state-controlled VietinBank, the country’s third-largest lender.
The Vietnamese legislation disallows an investor to hold a stake of 5% or more in more than two banks.