Vietnam’s FE Credit Secures US$100M Loan from Credit Suisse
by Fintech News Singapore January 31, 2017VPBank Finance Company Limited (FE Credit) has announced the completion of the procedure for a US$100 million syndicated loan. The capital will be used to supplement FE Credit’s working capital and will help the company further develop its domestic consumer finance business.
Credit Suisse AG Singapore acted as the intermediary for the signing of the loan contract, as well as the credit agent and legal representative for the loan. The loan is secured over a portfolio of FE Credit’s consumer loan receivables.
Commenting on the news, Rehan Anwer, executive managing director of investment banking and capital markets for Credit Suisse AG Singapore, highlighted the importance of the Vietnamese market for the bank, adding that it was committed to delivering value to customers.
“We are honored to be a partner of FE Credit and support the company’s ambitions, as well as accompanying local businesses [that are developing] creative financial solutions to consumers in Vietnam,” Anwer said.
Credit Suisse AG Singapore has arranged approximately US$7 billion in funding for local businesses and other entities over the last several years, and is one of the country’s largest foreign capital arrangers. The bank is part of the Credit Suisse Group, a Swiss multinational financial services holding company headquartered in Zurich. The group has representations in over 50 countries.
Kalidas Ghose, CEO of FE Credit, said: “This facility enables the company to raise capital for our growing business and provides strong support for our business operations.” Ghose added that it will further help the company’s ambition to become a leading consumer finance business in Vietnam.
Founded as the consumer finance division of Vietnam Prosperity Join Stock Commercial Bank (VPBank), FE Credit became an independent company in 2010. The company employs over 15,000 people and has operations in 64 provinces and cities nationwide. It serves more than 3 million customers in Vietnam and has a particular focus on the underbanked populations.
FE Credit currently provides personal loans worth up to 70 million VND (US$3,000) with flexible terms ranging from 6 to 36 months. It also provides credit cards to low-income customers (monthly income of 3 million VND, or ~US$130) with a credit limit of up to 60 million VND (US$2,600).
In 2016, FE Credit was granted the Best Consumer Finance Company in Vietnam award by Global Banking and Finance Review.
VPBank, formerly known as Vietnam Joint-Stock Commercial Bank for Private Enterprises, was established in 1992 and is one of the earliest-established joint-stock commercial banks in Vietnam. It is the banking partner of Timo, Vietnam’s first digital bank.
Featured image: Kalidas Ghose, CEO of FE Credit, via FE Credit.
