The signing ceremony on Sept. 25 was attended by Hanna Pors, Deputy Consul General of the Netherlands in Ho Chi Minh City, along with senior representatives of Nam A Bank and FMO.
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Representatives of Nam A Bank and FMO sign the financing agreement. Photo courtesy of Nam A Bank |
The agreement further reinforces Nam A Bank’s reputation, international- standard governance capabilities and commitment to sustainable development. Under the agreement, Nam A Bank will prioritize green projects while expanding lending to micro enterprises and small and medium-sized enterprises (SMEs).
The five-year loan will support agriculture, agricultural value chains and rural development, as well as farmers and businesses owned or led by women and young people.
The financing is also intended to improve access to longer-term funding for businesses facing financing constraints and support companies seeking to reduce emissions, respond to climate change and adopt more sustainable production models.
Vo Hoang Hai, Deputy CEO of Nam A Bank, said the financing would allow the bank to expand green lending and the social impact of its credit activities.
“The financing from FMO will be directed toward customer groups that still have considerable unmet financing needs, allowing the bank to expand its social impact alongside its green growth objectives,” Hai said.
“It is also the result of years of building credibility and reflects Nam A Bank’s strategy of diversifying its international funding sources.”
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Vo Hoang Hai, Deputy CEO of Nam A Bank, speaks at the event. Photo courtesy of Nam A Bank |
Frouke Hoekstra, Director of Financial Institutions at FMO, said the partnership supports two of the development bank’s priorities: the green transition and access to finance for underserved businesses.
“By providing long-term financing for green projects, micro enterprises and SMEs, including women- and youth-owned businesses, we aim to support a more sustainable and inclusive private sector in Vietnam,” she said.
Hanna Pors, Deputy Consul General of the Netherlands in Ho Chi Minh City, said Vietnam-Netherlands cooperation is increasingly moving from experience sharing toward developing long-term solutions for sustainable development, with green finance playing a growing role.
She said the agreement could help translate international capital, expertise and networks into development opportunities in Vietnam, while supporting Nam A Bank’s efforts to strengthen ties with international financial institutions.
The agreement follows an ESG forum held in Hanoi on Sept. 22 by the Embassy of the Netherlands in Vietnam and FMO. The “ESG Insights for Banking Leaders” event brought together senior executives from FMO’s partner banks to discuss integrating environmental, social and governance (ESG) risk management into board-level decisions.
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Representatives attend the signing ceremony between Nam A Bank and FMO. Photo courtesy of Nam A Bank |
The FMO financing follows another international credit agreement signed by Nam A Bank earlier this month. On Sept. 9, the bank secured a $30 million credit facility from French development finance institution Proparco for green finance, bringing its international financing signed in September to $90 million.
Nam A Bank has been expanding its green credit portfolio and integrating an Environmental and Social Management System (ESMS) into its lending operations. The bank said international financing has supported longer-term funding for renewable energy, high-tech agriculture and SMEs.
FMO is the Dutch entrepreneurial development bank, investing in private-sector projects in developing and emerging markets. It focuses on areas including agribusiness, food and forestry, energy and financial institutions.
FMO has more than 55 years of experience and a committed portfolio of approximately €16 billion across more than 85 countries.