The International Finance Corporation ( IFC ) is considering a major financial commitment to Hanoi-headquartered SeABank to boost social development and support small businesses in Vietnam.

The proposed investment, valued at up to US$86 million, will consist entirely of a long-term social loan aimed at narrowing financing gaps for underserved sectors in the country.

Southeast Asia Commercial Joint Stock Bank ( SeABank ) will use the proceeds to expand its lending portfolio for micro, small, and medium enterprises, with a specific emphasis on women-owned businesses, the IFC, a member of the World Bank Group, says in a disclosure.

A portion of the funds will be earmarked to increase access to affordable housing finance for low-and middle-income households, which remains a key challenge in the country’s rapidly expanding urban centres.

“Our goal with targeted social financing is to foster a more inclusive economic environment where small business owners and families have reliable access to capital,” according to the disclosure.

“By channeling long-term funding through local financial institutions like SeABank, we can directly support job creation, gender equality, and sustainable community growth in emerging markets.”

The investment is structured to provide SeABank with the long-term stable liquidity required to manage and scale high-impact lending assets. Aside from the capital injection, the IFC is expected to help the Vietnamese lender strengthen its social bond framework, ensuring that the tracking, management, and reporting of the loan allocation align with strict international transparency standards.

SeABank is one of Vietnam’s leading commercial joint-stock banks. The non-state lender has been expanding its retail as well as small and medium enterprise operations in recent years, heavily leaning on partnerships with international development finance institutions to support climate-smart projects, small businesses, and socioeconomic development initiatives across its domestic network.

The proposal remains under review and is pending final approval from the IFC’s board of directors, which is expected to meet on July 31.