An Binh Bank was established in early 90s as a rural commercial bank and was transformed into an urban commercial bank in August 2005. The Bank is now ranked in the top 10 Joint Stock Banks (“JSBs”) in terms of capitalization. As of March 31, 2010, An Binh Bank’s total assets stood at approximately $1.4 billion and its shareholders’ equity was recorded at $243 million for the same period. The main shareholders of An Binh Bank are Electricity Corporation of Vietnam (EVN) with a 24.25% shareholding, Maybank of Malaysia with 20% and Mr. Vu Van Tien, chairman of An Binh Bank, with 17.3% through his company Geleximco and personal/family holdings. The remaining shareholding of the Bank (38.45%) is held by over 5,200 minority investors. An Binh Bank’s shares are traded in the local OTC.

The total proposed IFC investment is $75 million consisting of (i) a quasi-equity investment of up to $50 million equivalent in Vietnamese Dong; and (ii) a $25 million A loan, of which $20 million for IFC’s own account and $5 million financed by the Clean Technology Fund (“CTF”).

69.26 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	69.26
Equity	0.0

* These investment figures are indicative

An Binh Bank is headquartered in Ho Chi Minh City, Vietnam and has 105 branches and transactions offices in 29 cities and provinces of Vietnam. An Binh Bank’s clients include corporate, SMEs and retail individuals. As of March 2010 the Banks’ customer base reached 1,915 corporate and SMEs and 11,350 retail customers. Investments can be made through out Vietnam.

The project is expected to achieve a strong development impact through promoting and enabling growth of the financial services sector in Vietnam. This should include the following: Return on Equity; Increasing access to finance for SMEs; Increase in Energy Efficiency (EE) and Clean Production (CP) portfolio; GHG emission reduction.

IFC's additionality would stem from strengthen social & environmental management and the improvement of corporate governance.

This project has been classified as a Category FI project according to IFC’s Environmental and Social (E&S) Review Procedure. IFC analyzed the FI’s portfolio and determined applicable performance requirements to include the IFC FI Exclusion List, applicable national laws and regulations, and the IFC Performance Standards (PS). IFC also appraised the FI’s labor practices according to the IFC’s PS 2: Labor and Working Conditions and reviewed the FI’s capacity to manage E&S risks and to establish and maintain a Social & Environmental Management System (SEMS). IFC may suggest Supplemental Actions to address any gaps in the SEMS. Based on the review, the project will be required to:
Develop an, or upgrade, if necessary, any existing SEMS, prior to disbursement to the satisfaction of IFC;
Identify responsible, qualified persons to manage and implement the SEMS (SEMS officer);
Commit to implement the SEMS, to ensure that its investments/activities supported by IFC financing are in compliance with the Applicable Performance Requirements;
Demonstrate commitment to applying the labor standards established by the IFC Performance Standard 2: Labor and Working Conditions;
Submit a periodic report to IFC as per a format to be provided by IFC.