The International Finance Corporation (IFC) will make a US$5 million loan to Thien Viet Securities Company under a deal signed here on Monday.
The three-year loan, which can be repaid in shares, will help Thien Viet develop investment banking services for small- and medium-sized enterprises (SMEs) seeking to access financing through the capital markets.
SMEs represent a domestic market largely overlooked by major foreign investment banks.
"We are proud to enter a partnership with the IFC," said Thien Viet Chairman Nguyen Trung Ha, who added that the relationship would help realise the company's long-term goal to become a strong and international investment bank.
In addition to the loan, IFC would provide the securities firm with advice on risk management and corporate governance and help it set up merchant and investment banking operations.
First engagement
IFC's vice president for Asia, Estern Europe, the Middle East and Northern Africa, Rashad Kaldany, said that partnership with Thien Viet Securities was IFC's first engagement with a securities service provider in Viet Nam.
IFC, the financial arm of the World Bank, has long comm-itment to the development of Viet Nam's financial sector and capital markets, Kaldany said.
"We are pleased to stand by Thien Viet Securities to help it attract and select a suitable long-term strategic partner of international standing," he added.