Hanoi (VNS/VNA) – Vietnam’s private lender VPBank has secured a 9.1 trillion VND (350 million USD) term loan facility, backed by Sumitomo Mitsui Banking Corporation (SMBC) and a group of development finance institutions and bilateral agencies.
They include British International Investment (BII), Export Finance Australia (EFA), Development Finance Institute Canada (FinDev Canada) and the Japan International Cooperation Agency (JICA).
SMBC acted as co-ordinator and mandated lead arranger for this financing.
The signing ceremony took place at VPBank’s Hanoi headquarters, attended by the Ambassadors of the United Kingdom, Australia, and Japan, as well as senior diplomatic representatives from the Canadian Embassy and other participating embassies. High-level delegates from the partner financial institutions were also present. VPBank was represented by its Chairman, CEO, and other senior leaders.
The 350 million USD loan, with a five-year maturity, serves as a significant funding source to support VPBank’s sustainable finance strategy focusing on three key pillars: social finance, green finance, and financing for essential infrastructure development. This financing commitment further supports Vietnam's national objectives to foster inclusive economic development, green growth, and critical infrastructure expansion.
“This successful funding from leading development finance institutions and bilateral agencies reaffirms VPBank’s financial strength, long-term strategic vision and strong international reputation in sustainable finance. The facility will allow the bank to expand its green and social lending portfolios while demonstrating a strong commitment to inclusive growth,” said VPBank's CEO Nguyen Duc Vinh.
The funds will be used for green projects that help Vietnam reach its net-zero goal by 2050, to support small- and medium-sized businesses – especially those led by women – and to improve essential services like healthcare, education, clean water and housing in underserved areas.
This is a landmark collaboration involving four bilateral agencies and is one of the largest multi-agency financings for a Vietnamese joint stock commercial bank to-date. It is also the first direct debt investment by BII and first on-lending facility for EFA in the Southeast Asia Financial Institutions sector.
Working with these reputable partners not only provides VPBank with access to a stable, long-term source of funding but also fosters broader collaboration. By introducing international best practices, this can create opportunities for VPBank to connect Vietnamese enterprises with international institutions through the network of these bilateral agencies from the UK, Australia, Canada and Japan.
“SMBC is very proud to have collaborated on this landmark facility with VPBank, BII, EFA, FinDev Canada and JICA. This transaction demonstrates the importance of partnerships to create positive impact on local communities and emerging markets.” said Carsten Stoehr, executive officer, deputy head of Asia Pacific Division, SMBC.
“Vietnam is a priority market for BII to deliver climate finance to countries in Southeast Asia that relies predominantly on fossil fuels as a source of energy generation. We are delighted to partner with VPBank, SMBC and other co-lenders on this landmark syndicated facility, which is our first direct debt investment in Vietnam.
"Our support will focus on supporting climate-responsible business operations and bolstering Vietnam’s green energy transition, which is crucial for its net-zero 2050 goals, for enduring positive growth,” said Srini Nagarajan, managing director and head of Asia, British International Investment.
“This facility marks a significant step forward in our engagement with Vietnam and banking partners across Southeast Asia” said John Hopkins, managing director & CEO of Export Finance Australia. “By working with VPBank and other international lenders, we’re supporting the delivery of green and essential infrastructure across the region.”
“Our investment in support of Vietnam’s climate sector aligns perfectly with our Indo-Pacific investment strategy. We are proud to work with VPBank in expanding funding for enterprises, particularly women-led ones, through this syndicated facility,” said Paulo Martelli, VP and Chief Investment Officer, FinDev Canada.
“This marks our second cooperation with VPBank to enhance financial access for women-owned micro, small, and medium enterprises (WMSMEs) under the SMBC-JICA Sustainable Finance Framework. We hope this project will further advance financial inclusion for WMSMEs and contribute to the sustainable development of the country,” said Shigeo Honzu, senior deputy director general, Private Sector Partnership and Finance Department, JICA.
With the support of globally respected financial institutions, VPBank reinforces its pioneering role in directing capital to projects that bring positive environmental and social impacts, in line with its “Sustainable Prosperity” strategy guided by ESG principles.
In May, VPBank published its first standalone Sustainability Report following international standards and successfully secured a record 1 billion USD syndicated green loan – the largest ever raised by a private entity in Vietnam./.
Central bank to assess compliance of banks in risk management
The SBV has so far issued a system of documents guiding the implementation of Basel, such as Circular 41/2016/TT-NHNN regulating the capital adequacy ratio for banks and foreign bank branches and Circular 13/2018/TT-NHNN regulating the internal control system of commercial banks and foreign bank branches. MB highly appreciates the SBV’s system of legal documents.
