Banks pumping money via ‘trade support’

One of domestic joint stock bank that is active in launching credit contracts recently is Ocean Commercial JS Bank or OceanBank. 

After cooperating with HSBC to arrange a 7-year credit of 400 billion dong for Phu Quy wind power plant (in Binh Thuan province) in May early, OceanBank continued signing another credit agreement of $7 million with Vietnam Airlines for purchasing engines of Airbus A321 aircrafts.

Nguyen Minh Thu, General Director of OceanBank said that the above deal was the first credit agreement established between Vietnam Airlines and OceanBank, opening a further cooperation for two sides in future.

Lately, Hanoi Building Commercial JS Bank (Habubank) in conjuction with other nine commercial banks were selected to join “Trade Financing Program” (TFP) hosted by Asia Development Bank (ADB) in order to boost the international trade activities. The program benefited exporters and importers in Vietnam.

TFP has been developing rapidly, which supported up to $2.8 billion to the trade activities in 2010 in Asia. Vietnam was one of the members using the largest capital of TFP and definitely the usage will be enhanced within this year, Steven Beck—Director of TFP program said. Thanks to TFP, commercial banks will have more preferred capital to support customers.

As participating in the program, issue banks such as Habubank will enjoy some preferences such as receiving ensurance by ADB’s AAA rating, quick feedback within 24-28 hours, and working with professional trade sponsoring experts.

The positive activities are mainly made in trade support field by foreign banks who have strength in capital and awareness of Vietnamese market, namely HSBC or Citibank.

HSBC, Citibank and DBS signed deal to arrange total $457 million for Vietnam Airlines to purchase eight Airbus A321-231S.

Previously, HSBC also had been the bank that was responsible for providing $904 million under Export Credit Agency (ECA) sourced from Sinosure institution, Hermes to finance Vung Ang 1 thermo power plant of PetroVietnam.

Similarly, Citibank Vietnam has completed their role in arranging $200 million credit for electricity transmission projects of National Power Transmission (NPT) Corp.
Sources of above credit support have been helping enterprises partially ease the tensity of capital for business within 2011. – Vietbiz24

Posted by VBN on Jun 7 2011. Filed under Banking-Finance. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry