Viet Nam: Expanding Micro, Small, and Medium Enterprise Lending Project

Nonsovereign Project | 51218-001

ADB will provide a senior unsecured loan to ABB of up to $100 million in up to three tranches in staggered tenors of up to 5 years.

Project Details

  • Project Officer
    Bracey, Pamela

    Request for information
  • Approval Date
    11 December 2017
  • Country/Economy
    Viet Nam
  • Sector
    • Finance
Project Name Expanding Micro, Small, and Medium Enterprise Lending Project
Project Number 51218-001
Borrower / Company An Binh Commercial Joint Stock Bank
Country / Economy Viet Nam
Location Nation-wide
Type or Modality of Assistance
3618 Loan Ordinary capital resources USD 30.00 million Approved
Strategic Agendas Inclusive economic growth
Drivers of Change Private sector development
Sector / Subsector

Finance / Small and medium enterprise finance and leasing
Gender Equity and Mainstreaming Some gender elements
Responsible ADB Department
Responsible ADB Division
Responsible ADB Officer Bracey, Pamela
Project Sponsor(s)
Description ADB will provide a senior unsecured loan to ABB of up to $100 million in up to three tranches in staggered tenors of up to 5 years.
Objectives and Scope ABB will use the proceeds of ADB's loan to finance business loans to MSMEs in Viet Nam.
Linkage to Country/Regional Strategy ADB''s Midterm Review of Strategy 2020 emphasizes ADB''s support to the financial sector by helping to develop financial infrastructure, institutions, and products and services. The proposed transaction contributes to financial sector development by supporting the growth of a financial institution, an important component of Viet Nam's financial sector. ADB''s Midterm Review of Strategy 2020 also seeks to promote inclusive growth. Without access to formal financial services, lower income or underserved segments of the population will be excluded from the growth process and its benefits. According to ADB's country partnership strategy for Viet Nam, 2016- 2020 and country operations business plan for Viet Nam, 2017 -2019, ADB's nonsovereign operations will support investments that promote more inclusive economic growth based on promoting job creation and competitiveness. The proposed transaction will support the development of MSMEs in Viet Nam, part of the inclusive economic growth objective identified in the country partnership strategy, and a high government priority.
Safeguard Categories
Environment FI
Involuntary Resettlement FI-C
Indigenous Peoples FI-C
Summary of Environmental and Social Aspects
Environmental Aspects The transaction's potential environmental and social impacts, risks associated with the financial intermediary's existing and/or likely future portfolio, and commitment to and capacity for environmental and social management have been assessed. ABB has an existing environmental and social management system under which an exclusion list and procedures based on the loan size are applied to address projects' environmental and social risks. Prior to the disbursement of the ADB financing, the company will enhance its existing environmental and safeguards management system to comply with ADB's Safeguard Policy Statement (2009) requirements by updating its exclusion list and screening and categorization procedures.
Involuntary Resettlement None, because of the small nature of investments involved. The environmental and social management system (ESMS) will provide guidance on due diligence and corrective actions in the unlikely event of any involuntary resettlement impacts.
Indigenous Peoples No adverse impacts, because of the small nature of investments involved.
Stakeholder Communication, Participation, and Consultation Not required. Banks have adequate processes in place that encourage participation.
Timetable for assistance design, processing and implementation
Concept Clearance 01 Aug 2017
Credit Committee Meeting 30 Oct 2017
Approval 11 Dec 2017
Last PDS Update 12 Jun 2019

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