IFC invests US$100 million in SeABank to boost access to housing loans

VOV.VN - The International Finance Corporation (IFC) recently announced plans to invest US$100 million into Vietnamese lender SeABank to boost access to housing loans.

SeABank said that it is seeking to double the amount of mortgages it offers for low- and mid-end homes by 2026, a move which will contribute to thousands of new construction and related jobs.

With a rapid annual urbanisation rate of 3%, half of the Vietnamese population is expected to reside in urban areas by 2040, totaling approximately 50 million people. This will create the need for an estimated 374,000 additional housing units every year.

However, the limited availability of long-term funding currently restricts access to housing finance which is especially challenging for lower and middle-income homebuyers as they need longer-term funding due to low levels of income.

Since 2021 the IFC has advised the Vietnamese bank in areas of climate finance, the Banking on Women programme, and environmental, social, and corporate governance (ESG).

Recently, the IFC consulted SeABank to develop dedicated housing finance products as a way of better serving lower and middle-income people, a key priority for the Vietnamese Government.

The IFC is therefore aiming to increase the availability of long-term funds for mortgage lending in emerging markets, thereby allowing access to better quality housing, promoting inclusive development, and creating jobs.

In Vietnam, it has worked with both housing developers and banks to promote the availability of both affordable housing and housing finance that lower and middle-income households can gain access to.

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