Citi acted as the sole lender for over $100 million social trade advance facilities extended to the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) and Military Commercial Joint Stock Bank (MB).
Structured as sustainable trade advances, these debt transactions feature a clearly defined use of proceeds to support and expand BIDV’s and MB’s lending portfolios for micro, small and medium-sized enterprises (MSMEs) in Vietnam.
Both leading local banks remain committed to supporting MSMEs in their sustainable development journeys by providing financial solutions that enable local businesses to grow. According to the 2024 Vietnam Enterprise White Book, MSMEs are widely recognised as the backbone of Vietnam’s economy, contributing over 45 per cent of GDP and generate more than 60 per cent of total employment.
The underlying financing is intended to help MSMEs with their working capital needs for productive purposes and support income-generating activities, thereby contributing to business growth, job creation and inclusive local economic development.
Citi’s partnerships with local financial institutions are strategically important, reinforcing the bank’s ability to deepen client relationships through differentiated and innovative solutions.
“Through these transactions, Citi continues to demonstrate that it is a trusted and proven partner to financial institutions in Vietnam in advancing their strategic priorities. This structure can also be replicated with other local financial institution clients to address their funding needs while supporting broader alignment with sustainable finance objectives,” said Pham Huu Hai, Corporate Banking head of Citi Vietnam.
In 2021, Citi announced its global goal to finance and facilitate $1 trillion towards sustainable finance by 2030. Client offerings including Citi’s Sustainable Trade and Working Capital Loans solution can contribute to the $1Trillion Sustainable Finance Goal. Beyond these transactions for financial institutions, Citi has advanced sustainable finance in Vietnam through a broader suite of innovative financings and capital markets solutions.
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