Summary of Proposed Investment
Project Number
4434
Company Name
VIETNAM INTERNATIONAL LEASING CO. LTD
Date SPI Disclosed
Apr 23, 1996
Country
Viet Nam
Industry
Financial Markets
Status
Completed
Sector
Leasing Services
Department
Regional Industry - FIG Asia & Pac
Environmental Category
FI
Previous Events
Approved : Jun 28, 1996
Signed : Aug 27, 1996
Invested : Dec 20, 1996
Project Description
Summary Of Project Information (SPI)
| Project Name | Vietnam-International Leasing Company Limited |
| Region | Asia |
| Sector |
Projected Board DateMay 23, 1996
Company NameVietnam International Leasing Company Limited
Technical Partner and/or Major Shareholders
Local sponsor - The Industrial and Commercial Bank of Vietnam 19% Main technical partner - Korea Industrial Leasing Corporation 32% Other partners - Nippon Credit Bank 17% - Banque Francaise du Commerce Exterieur 17% - International Finance Corporation 15%
Project Cost Including proposed IFC investment
Initial capitalization of this Company is expected to be US$5 million. IFC is expected to take up to 15% of the equity in the amount of US$750,000 and to make a loan in the amount of up to US$5 million.
Location of project and Description of site
The Company is expected to be headquartered in Ho Chi Minh City, Socialist Republic of Vietnam.
Description of Company and Purpose of Project
The project consists of the establishment of one of the first finance leasing company in Vietnam. The Company will write full pay-out financial leases for plant and machinery, office equipment and transportation vehicles to enterprises involved in export-oriented activities. The project addresses the financing needs of small and medium scale enterprises, which form the bulk of Vietnam’s private sector. This project is a logical extension of IFC’s technical assistance in leasing which started in 1991. VILC’s equity holders are expected to provide the initial term funding package. In addition to the supply of equity and term finance, IFC will act as a neutral broker between the local and the foreign sponsors in a venture that will help build a finance leasing industry in Vietnam and thereby deepen Vietnam’s financial sector.
Environmental Category and Issues
This is a financial Intermediary (FI) category project. For relevant operations, VILC will be required to implement an environmental risk management system to ensure that the operations of lessee companies comply with host country environmental and health and safety requirements as well as World Bank policies. Two officers who will conduct environmental reviews will attend IFC’s environmental risk management workshop. VILC will provide IFC with an annual environmental report.
| Date SPI sent to PIC | April 23, 1996 |
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 676-0365
Sponsor / Cost / Location
Related ESRS/ERS
