Microfinance Focus April 5, 2011: FMO, the Netherlands Development Finance Company recently arranged for a 10-year, USD 150 million subordinated Tier 2 syndicated loan facility agreement for Vietnam based, Sacombank.

The agreement was signed by five European banks comprising of FMO, Norfund, DEG, BIO and Proparco in Vietnam and it hopes to boost development of Vietnam’s capital market and its SME sector.

FMO’s Chief Investment Officer Jurgen Rigterink said, “FMO is proud to have arranged this first-of-its-kind loan in the history of Vietnam. This long-term commitment is a boost for the SME sector and a clear vote of confidence for the Vietnamese financial sector in general.”

Founded in 1991, Vietnamese Bank, Sacombank operates in Laos and Cambodia. It receives funds from international organizations such as IFC, FMO, ADB, and Proparco to support small and medium enterprises in Vietnam.

The Netherlands Development Finance Company (FMO) is a bilateral private sector development bank of the Netherlands. It focuses on three sectors such as financial institutions, housing and energy.