FMO FINANCE UP TO USD 100 MIO FOR MSB

On November 2, 2023, Vietnam Maritime Commercial Joint Stock Bank (HoSE: MSB) and the Dutch Development Bank (FMO) signed a Letter of Interest for medium and long-term loan under the witness of The Prime Ministers of Vietnam and the Netherlands, representatives of leaders of ministries of two countries and about 300 businesses from both sides. 

The signing ceremony is within the framework of the Netherlands - Vietnam High-Tech Business Forum.

FMO was established in 1970, in which the Dutch State owns 51% of the shares. FMO supports sustainable growth of private sector in developing and emerging markets through investments in projects and financial institutions.

FMO, together with the Dutch Fund for Climate and Development (DFCD), intends to provide MSB with the loan of up to 100 million USD with the tenor up to 9 years to finance small and medium enterprises (SMEs) and green projects. In addition, FMO will also explore supporting MSB to complete and upgrade its environmental and social risk management system to approach higher international standards. Along with technical support from FMO, MSB expects to promote credit products, not only in green sector but also credit products associated with "sustainable" criteria.

The financing from MSB demonstrates MSB's ability and commitment to meet with environmental and social (E&S) criteria, as well as the Bank's orientation in increasing the role of environmental and social factors.

Regarding green financing, the bank plans to focus on areas such as renewable energy, climate change prevention, and low carbon emission technology.

MSB has integrated the environmental and social risk management into the credit assessment from June 1, 2023.

MSB representative said: "The signing of LOI with FMO is an important milestone in MSB's operations as we have more resources to promote strategic business. We do hope that, in the coming time, MSB will have opportunities to receive more sources from prestigious organizations around the world, promoting cooperative relations between Vietnam and other countries, and joining hands with the Government to reach Net zero commitment by 2050.”

The cooperation with FMO once again affirms MSB's position in the market, and is an important step to help the bank move closer to international standards in credit, especially in the green credit segment.