China to lend $200mn to Vietnam's BIDV

HANOI: State-run China Development Bank has agreed to lend $200 million to Vietnam's state lender BIDV to help fund vari
21 Dec, 2011

The Chinese bank signed a letter of commitment for the five-year loan with BIDV in Hanoi, unlisted BIDV said in a statement.

Funds from the loan, the second in the past two years, would also be used for projects in agricultural production, BIDV said, without giving details of the credit.

The signing took place on the first day of a Vietnam visit by Chinese Vice President Xi Jinping.

BIDV said it took a three-year loan worth $100 million from the Chinese bank in 2010.

BIDV, or the Bank for Investment and Development of Vietnam, is the country's second-largest lender by assets after Agribank. Both of them are fully owned by the state.

BIDV has planned an initial public offering on domestic markets on Dec. 28 to sell 3 percent of its shares before teaming with a foreign strategic investor next year.

Copyright Reuters, 2011

Read Comments