Nguyen Van Thang (C), general director of VietinBank, shakes hands with representatives of SMBC and KfW IPEX-Bank GmbH after signing the facility agreement on Monday - Photo: Courtesy of VietinBank

Vietnam Bank for Industry and Trade, or VietinBank, on Monday signed an agreement to borrow around US$155 million from two German banks, Dusseldorf branch of Sumitomo Mitsui Banking Corporation (SMBC) and KfW IPEX-Bank GmbH.

According to a statement released by VietinBank on Monday, Euler Hermes, an export insurance company of the German government, provides insurance service of up to 85% of the facility after evaluating financial status, operations and solvency of Vietinbank. Given guarantee of Euler Hermes, the two foreign lenders agreed to provide a loan of 120 million euros, or US$155 million, for VietinBank in five years.

The Singapore branch of SMBC will arrange capital for the facility agreement.

VietinBank chairman Pham Huy Hung said that this credit will help the lender secure safe operations, restructure assets and debts and supplement foreign currency capital. VietinBank will also be more active in supporting projects in Vietnam.

SMBC is the third largest bank in Japan with over 440 branches and representative offices worldwide. KfW IPEX-Bank GmbH specializes in providing export and investment credits and financial cooperation with developing countries.

The Saigon Times Daily