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VPBank issues Vietnam’s first international sustainable bonds

According to the World Bank Group, Vietnam will need approximately 368 billion USD in investment for climate adaptation and carbon reduction projects by 2040. Yet, as of the end of 2024, green credit accounted for just 4.5% of the country’s total outstanding loans.

VPBank has successfully issued 300 million USD in sustainable bonds on the international market. (Photo: VNA)
VPBank has successfully issued 300 million USD in sustainable bonds on the international market. (Photo: VNA)

Hanoi (VNA) – Vietnam Prosperity Joint Stock Commercial Bank (VPBank) has become the first bank in Vietnam to successfully issue 300 million USD in sustainable bonds on the international market.

This milestone marks an important step in bringing domestic financial institutions closer to the global green capital market.

The issuance, structured as a private placement, has a maturity of five years and comprises 1,500 bonds, each with a face value of 200,000 USD. Proceeds will be allocated by VPBank to renewable energy, sustainable transport, low-emission agriculture, inclusive finance for small and medium-sized enterprises (SMEs) and women-led businesses, as well as initiatives that enhance community well-being.

VPBank estimates that the capital raised could help generate around 38,000 jobs over the next five years, contributing to higher incomes and expanded economic opportunities nationwide.

Out of the total 300 million USD, the International Finance Corporation (IFC) invested 200 million USD as the lead investor, while the remaining 100 million USD was contributed by Proparco, a leading French development finance institution. In addition to financing, IFC also provided technical assistance to ensure the transaction meets international standards and maintains a high level of transparency.

According to the World Bank Group, Vietnam will need approximately 368 billion USD in investment for climate adaptation and carbon reduction projects by 2040. Yet, as of the end of 2024, green credit accounted for just 4.5% of the country’s total outstanding loans. At VPBank alone, green credit reached 31.7 trillion VND by mid-2025, up more than 44% compared to the end of 2024.

VPBank CEO Nguyen Duc Vinh stated that the successful issuance of sustainable bonds on the international market represents not only a major milestone in the bank’s sustainable development strategy but also Vietnam’s growing ability to connect with global green capital flows.

The transaction follows VPBank’s participation in the Green Commercial Bank Alliance initiated by IFC. Its success is expected to set an important precedent, creating opportunities for other Vietnamese financial institutions to access global green finance, driving both business growth and sustainable socio-economic development./.

VNA
#International Finance Corporation #sustainable bonds #VPBank #Green Commercial Bank Alliance
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