Global collaboration initiates $350 million venture aimed at advancing Vietnam's sustainable growth, with VPBank leading the charge alongside international partners.
VPBank Secures Record $1 Billion Green Loan for Sustainable Development
In a significant move towards sustainable finance, VPBank, a leading Vietnamese bank, has successfully secured a VND9.1 trillion (approximately US$350 million) term loan facility. This landmark financing, coordinated and led by Sumitomo Mitsui Banking Corporation (SMBC), involves a consortium of international development finance institutions and bilateral agencies.
The five-year syndicated loan is aimed at supporting VPBank’s sustainable finance strategy, focusing on social finance, green finance, and financing essential infrastructure development. The consortium includes British International Investment (BII), Export Finance Australia (EFA), Development Finance Institute Canada (FinDev Canada), and the Japan International Cooperation Agency (JICA).
Key details and purposes of this facility include:
- Supporting three main pillars: social finance, green finance, and financing essential infrastructure development. This supports projects that promote inclusive economic growth, green transition, and critical infrastructure expansion in Vietnam.
- Alignment with Vietnam’s national goals, including inclusive economic development, green growth, and infrastructure expansion, contributing to the country’s climate goals such as net-zero emissions by 2050.
- Focus on financing small and medium-sized enterprises (SMEs), particularly women-led businesses, in line with the global 2X Challenge for gender equality.
- Investment in climate-friendly projects and essential infrastructure—improving access to healthcare, education, sanitation, clean water, and affordable housing in underserved areas.
The facility bolsters VPBank’s international reputation and financial strength in sustainable finance, enabling expansion of its green and social lending portfolios with a strong commitment to inclusive growth.
The signing ceremony involved high-level representatives, including ambassadors from the UK, Australia, Japan, Canadian diplomatic staff, and senior executives from VPBank and the participating institutions.
This is a landmark collaboration involving four bilateral agencies and one of the largest multi-agency financings for a Vietnamese joint stock commercial bank to-date. British International Investment (BII) made its first direct debt investment in Vietnam with this financing, while Export Finance Australia (EFA) provided its first on-lending facility in the Southeast Asia Financial Institutions sector.
Srini Nagarajan, managing director and head of Asia, British International Investment, stated, “The funding will focus on supporting climate-responsible business operations and bolstering Vietnam's green energy transition.” Paulo Martelli, VP and Chief Investment Officer, FinDev Canada, added, “The investment aligns with our Indo-Pacific investment strategy and supports funding for enterprises, particularly women-led ones.”
Shigeo Honzu, senior deputy director general, Private Sector Partnership and Finance Department, JICA, noted the project advances financial inclusion for women-owned micro, small, and medium enterprises (WMSMEs) and contributes to the sustainable development of Vietnam.
In summary, this loan facility not only provides significant capital for VPBank but also serves as a major effort to promote sustainable development aligned with Vietnam’s economic and environmental priorities through international financial cooperation. The funds will be used for green projects, supporting small- and medium-sized businesses, and improving essential services like healthcare, education, clean water, and housing in underserved areas.
- This significant move in sustainable finance, secured by VPBank, involves a consortium focusing on social finance, green finance, and financing essential infrastructure development.
- The green loan facility is aimed at supporting projects that promote inclusive economic growth, green transition, and critical infrastructure expansion in Vietnam.
- Aligned with Vietnam’s national goals, this facility will contribute to the country’s climate goals, such as net-zero emissions by 2050.
- The financing will be used to invest in climate-friendly projects and essential infrastructure, improving access to healthcare, education, sanitation, clean water, and affordable housing in underserved areas.
- The facility serves as a major effort to promote sustainable development aligned with Vietnam’s economic and environmental priorities through international financial cooperation.
- The signing ceremony involved representatives from the UK, Australia, Japan, Canada, and various participating institutions.
- This is a landmark collaboration, marking the first direct debt investment in Vietnam for British International Investment (BII) and the first on-lending facility in the Southeast Asia Financial Institutions sector for Export Finance Australia (EFA).
- The funding will support climate-responsible business operations and bolster Vietnam's green energy transition, emphasizing the focus on financing small and medium-sized enterprises, particularly women-led businesses.
