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Signing of USD 20 Million credit facility agreement between PROPARCO and Saigon Thuong Tin Commercial Joint Bank - SACOMBANK

This credit facility reinforces the financing of SMEs, an essential part of Vietnam’s economy, and thereby contributes to the country’s effort to boost the economy in an environment where long term financial resources are scarcer.

On November 13th, 2009, Mr Tran Xuan Huy, Chief Executive Officer of SACOMBANK, and Mr Jean-Michel SEVERINO, Chief Executive Officer of Agence Française de Développement (“AFD”), and Chairman of PROPARCO, the private sector arm of AFD, have signed a credit facility agreement of USD20 million between SACOMBANK and PROPARCO. This credit facility agreement was signed during the Franco-Vietnamese Forum of Entrepreneurs, in presence of members of the Vietnamese government and of the Prime Minister of France, Mr. François Fillon.

The objective of this USD20 million credit facility is to reinforce the medium and long term lending capacity of SACOMBANK, to support its small and medium enterprises (SME) lending activity. Lending to SMEs is the prime focus of this leading joint stock bank founded 1991 which has a portfolio of over 30,000 SMEs and a network of 287 branches and transaction points in 45 provinces of Vietnam.

Moreover, this dollar financing contributes to the stimulus package deployed by the Vietnamese authorities, in an environment where the international financial crisis has made long term financial resources scarcer, illustrating PROPARCO’s counter cyclical role. Facilitating access to credit for SMEs is indeed one of the critical aspects of the Government’s plan given the essential role of these enterprises for the country’s economy.

As part of this financing, PROPARCO also participates to the improvement of SACOMBANK’s environmental and social practices by assisting the bank to implement a monitoring of the environmental and social impacts of its lending activities.

This transaction is part of the different programs conducted by AFD to participate to the development of Vietnam’s financial sector. AFD has committed in total in excess of EUR900 million to public and private sector projects in Vietnam since it started its operation in this country in the late 90s.

About SACOMBANK

Founded in 1991, Ho Chi Minh City-based SACOMBANK is one of Vietnam’s major banks with about 3% of system assets and total assets of VND 98,243 billion (USD 5,519 million) as of September 2009. Its strategic shareholders are Australian and New Zealand Banking Corporation and Dragon Financial Holdings, with 10% and 9% respectively. Sacombank was furthermore the first bank in Vietnam to receive the funding and technical assistance from IFC (International Finance Corporation), the private sector arm of the World Bank group. The bank has an extensive network of 287 branches and transaction offices in 45 out of 63 Vietnamese provinces. After 17 years of operation in Vietnam, the bank moreover decided to serve cross border traders in the Greater Mekong Region and set up offices in China, Laos and Cambodia. SACOMBANK received four awards in 2008, including “Best Bank in Vietnam 2008” by FinanceAsia UK; “Best Bank in Vietnam 2008” by Global Finance US; “Best Domestic Bank in Vietnam 2008” by The Asset Hong Kong; and “Vietnam Retail Bank of The Year 2008” by The Asian Banking and Finance UK.

About PROPARCO

PROPARCO is the subsidiary of Agence Française de Développement (France’s main provider of bilateral overseas’ development aid) for the financing of the private sector. Founded in 1977, PROPARCO provides long term financing in the form of debt or equity to banks, infrastructure and industrial projects in over 60 emerging and developing countries. PROPARCO combines developmental objectives and profit sector profitability requirement. It has extended EUR800 million of new commitments in 2008.