International Bank for Economic Co-operation has started cooperation in the field of trade finance with HOCHIMINH CITY DEVELOPMENT JOINT STOCK COMMERCIAL BANK (HDBank), Vietnam. This is a forfaiting operation to repurchase a letter of credit debt in the amount of USD 4.8 million for a term of 16 months. IBEC financing ensures the procurement of equipment for the construction of solar power plants in Vietnam.
The deal clearly demonstrates how trade finance products contribute to the implementation of IBEC's strategic objectives. In accordance with the new Strategy for the period 2021-2025, IBEC pays special attention to financing projects and companies that support the UN Sustainable Development Goals. In particular, this forfeiting operation not only provides support for international trade and the promotion of high-tech equipment in the member countries of the Bank, but also contributes to the development of sustainable renewable energy, which directly correlates with SDG 7. The Bank intends to work actively to optimize the proposed financial instruments for the needs and deals specifics in such areas.
The start of partnership relations on trade finance with HDBank is another step towards intensifying IBEC activities in the Vietnamese direction, and more broadly, in Southeast Asia. The rapidly growing economy of the region is focused on active foreign economic relations, including with the member countries of the Bank. The offered range of financial instruments and types of documentary transactions, quality and efficiency, affordable tariffs make IBEC services in the field of trade finance increasingly in demand among partners and their clients.