International Bank for Economic Co-operation is expanding its range of trade finance instruments. The first forfaiting deal is implemented – IBEC bought out the obligations of the Vietnamese SHB Bank in the secondary market from an international financial institution. The transaction amount is USD 2.5 million, for a period of 4 months.
Thus, IBEC takes part in financing a contract for the supply of monocrystalline solar panel modules to Vietnam – a key element for renewable solar energy projects. The combination of sectoral priority – "green energy" and key product – trade finance, makes this deal significant in the context of the new IBEC strategy of IBEC as a multilateral development institution focused on the implementation of sustainable development goals and support of international economic relations.
The institutional aspect is also important – SHB remains the main IBEC counterparty in the Vietnamese direction. With all the restraining factors caused by the pandemic, the volume of transactions between the two banks amounted to almost USD 40 million, a threefold increase compared to last year. In total, since the signing of the cooperation agreement in 2018, joint deals worth more than USD 60 million have been implemented.