Underpinning the deal is a 50:50 risk-sharing partnership between IFC and VPBank, with each participating in risk for up to $25 million in every eligible transaction.
It will enable Tan Long Group to diversify procurement of agri-commodities and unlock further agri-financing opportunities in this high potential sector of Vietnam.
This partnership is expected to have a significant development impact on the animal protein value chain in Vietnam, an increasingly important sector in the country, as it will enable Tan Long Group to procure, store and distribute raw materials more effectively and efficiently.
Nguyen Thi Thanh Van, Deputy General Director of Tan Long Group said: ““It will not only help Tan Long Group to consolidate its position as a market leader in soft commodity trading through diversifying procurement of high quality agri-commodities at lower costs, it will also increase efficiency of other agribusiness value chain participants and Vietnam’s agribusiness sector in genera.l”
“Diversifying trade finance products will help realize VPBank’s strategy of becoming a leading small and medium sized enterprises bank over the next five years, with supporting local importers and exporters as a pillar,” said Dinh Van Nho, VPBank Deputy Chief Executive Officer cum Head of Corporate Banking Division.
The initiative also reflects IFC’s priorities in Vietnam to support the banking sector and strengthen intermediaries in the agribusiness value chain.
“Vietnam’s agriculture sector is at a turning point. These types of partnerships with VPBank and Tan Long Group are key steps to enhance the competitiveness of the agribusiness value chain in Vietnam,” said Kyle Kelhofer, IFC Country Manager for Vietnam, Cambodia and Lao PDR.