IFC, a member of the World Bank Group, is providing a financing package of $75 million to Phu My Hung Development Corporation to help sustain its property development operations, in the wake of Covid-19 impacts.
This investment will allow the company to extend financial relief to clients, suppliers, and contractors along its property value chain, helping preserve jobs and contributing to a resilient local economy.
This bond is the first IFC’s Covid-19 response project in Vietnam. It comes under the Real Sector Crisis Response Facility, which will provide $2 billion globally to IFC’s existing clients in health care, infrastructure, manufacturing, agriculture, and services industries to cope with the pandemic.
Overall, IFC will provide $8 billion Covid-19 fast-track financing to support the private sector and preserve jobs across the world.
The latest support comes after IFC helped Phu My Hung in 2019 expand its housing projects in Vietnam’s secondary provinces, aiming to improve local residents’ access to quality housing as well as education and health-care services.
“This funding will bolster Phu My Hung’s ability to cope with the challenges emerging from the Covid-19 pandemic including demand and supply chain disruptions,” said Kyle Kelhofer, IFC Country Manager for Vietnam, Cambodia and Lao.
Gary Tseng, CEO of Phu My Hung, shared that “local businesses are the primary engines of job creation, which drive the national economy. With the Covid-19 situation, IFC’s support will enable us to extend financial relief to our local clients”.
Having successfully contained the pandemic, Vietnam is now addressing the impacts of Covid-19 on its economy, especially in trade, services, and construction, the three most severely affected sectors.
In February, IFC had increased trade finance limits for Vietnamese banks as a rapid response initiative to address, in advance, potential trade finance challenges triggered by the Covid-19 outbreak.
Vivek Pathak, IFC regional director for East Asia and the Pacific, said that leveraging IFC’s experience from past shocks, IFC aims to harness the private sector to limit economic damage. Supporting local businesses in times of crisis is crucial, since they are the main drivers of employment in emerging economies.
IFC’s support, an effective response to help ensure resiliency, shows our confidence in local businesses as well as our commitment to restore Vietnam’s economy to a sustainable growth path post-pandemic.
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