The International Finance Corporation (IFC), the World Bank's private-sector funding arm, will provide Thien Viet Securities with a US$5 million loan to help the local firm develop investment banking services for small- and medium-sized enterprises in Vietnam.
"We have invested in a number of Vietnamese banks before, but this is IFC's first engagement with a securities service provider in the country," said Rashad Kaldany, IFC's deputy president for Asia, Eastern Europe, the Middle East and North Africa, at the signing ceremony on Monday in Hanoi.
The loan has a three-year term and can be converted into shares of the company, according to a release issued on August 16 by the IFC.
The World Bank unit will advise Thien Viet Securities on risk management and corporate governance practices to help the emerging capital market player build its merchant and investment banking operations.
By helping the securities firm enhance its capacity to meet international standards, IFC will be able to replicate these practices in other sectors of the economy, particularly small and midsize enterprises that are currently overlooked by foreign investment banks, according to representatives from the IFC.
Thien Viet Securities offers investment banking services to local private companies seeking to gain access to capital market financing.