Vietnam Prosperity Joint Stock Commercial Bank (VPBank) and the US International Development Finance Corporation (DFC) signed a commitment letter for a bilateral loan valued at $300 million.
The loan, with a tenure of seven years, is primarily targeted at enhancing financial accessibility for small- and medium-sized enterprises (SMEs) in Vietnam, especially those led or owned by women and businesses emphasizing climate solutions.
The pivotal signing ceremony was graced by dignitaries such as the US Ambassador to Vietnam Marc Knapper, Special Presidential Envoy for Climate John Kerry, DFC CEO Scott Nathan, and VPBank Chairman Ngô Chí Dũng, in addition to leaders from both institutions.
Established in 2019 under the Better Utilisation of Investments Leading to Development (BUILD) Act, DFC operates as the US government’s developmental finance entity. Its chief mission is to channel private capital into the developing world, aligning with US diplomatic policies, and furthering private sector-led development.
Notably, this agreement coincides with US President Joe Biden’s official visit to Việt Nam on the occasion of the 10th anniversary of the Việt Nam-US comprehensive partnership. It underscores the strengthening ties and expanding cooperation between the two nations.
DFC’s decision to extend the loan to VPBank reaffirms the latter’s stature as a top-tier commercial bank in Việt Nam. The sizable loan, equivalent to VNĐ7.2 trillion, will fortify VPBank’s capital reserves. This, in effect, will bolster sustainable lending initiatives aligned with the bank’s expansion strategy.
Focus areas encompass SMEs, especially women-centric SMEs, and an emphasis on funding projects driven by climate considerations and low-carbon technologies.
VPBank has historically been at the forefront in Việt Nam, championing eco-friendly, social, and climate-conscious initiatives. The bank has demonstrated a consistent commitment to sustainability and responsible lending.
This partnership with DFC adds to VPBank’s impressive track record of securing substantial syndicated loans from global lenders. Notably, at the close of 2022, VPBank successfully raised a $500 million syndicated loan from eminent financial institutions, including the Asian Development Bank (ADB), Sumitomo Mitsui Banking Corporation (SMBC), Japan International Cooperation Agency (JICA), ANZ Bank, and Maybank Securities Pte Ltd.
