Vietnam Prosperity Joint Stock Commercial Bank (VPBank) alongside Sumitomo Mitsui Banking Corporation (SMBC) and partner Development Finance Institutions (DFIs) and bilateral agencies, including the Japan International Cooperation Agency (JICA), Development Finance Institute Canada (FinDev Canada), Export Finance Australia (EFA) and British International Investment (BII), have announced the successful signing of a $350 million of term loan facility. SMBC acted as coordinator and mandated lead arranger for this financing.

The signing ceremony was held at VPBank's headquarters in Hanoi with the presence of the Ambassadors and embassy representatives of the Australia, Canada, Japan and the UK, along with senior representatives from the participating financial institutions.

The $350 million loan (equivalent to approximately VND 9.1 trillion), 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. It also supports Vietnamese enterprises—particularly women-led businesses—in their global expansion and helps improve the quality of life through essential infrastructure development,” Nguyen Duc Vinh, chief executive officer, VPBank stated.

The proceeds will be allocated to green projects that support Vietnam’s commitment to achieving net-zero emissions by 2050; to support small and medium-sized enterprises (SMEs), especially those owned or led by women, in line with the global 2X Challenge for gender equality; and to vital infrastructure projects in underserved areas, improving access to basic services such as healthcare, education, sanitation, clean water and affordable housing.

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, JICA, FinDev Canada, EFA and BII. 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. “Creating social value is central to SMBC’s mission and this transaction which supports multiple UN SDGs embodies our commitment.”

“We are pleased to be part of this transaction with VPBank, in collaboration with the co-financiers, to support the expansion of sustainable finance in Vietnam. 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.

“Our investment in Vietnam’s green growth and sustainability agenda is a key part of our strategic priorities in the Indo-Pacific region. We are proud to work with VPBank in expanding funding for enterprises, particularly women-led ones, through this syndicated facility. By collaborating with committed partners, we aim to strengthen climate action, advance inclusive and sustainable development and create lasting positive impact in Vietnam,” said Ms. Lori Kerr, chief executive officer, FinDev Canada.

“This facility marks a significant step forward in our engagement with Vietnam and banking partners across Southeast Asia” said John Hopkins, managing director and 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.”

Srini Nagarajan, managing director and head of Asia at BII said: “Vietnam is a priority market for BII as we continue to deliver climate finance to countries in Southeast Asia that rely predominantly on fossil fuels for energy generation. We are delighted to partner with VPBank, SMBC and other lenders on this landmark syndicated facility, our first direct debt investment in Vietnam. Our support will focus on promoting climate-responsible businesses and accelerating Vietnam’s green energy transition, which are crucial for achieving its net-zero 2050 goals and ensuring long-term sustainable growth.”

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. This marks another step in delivering on Vietnam’s sustainability commitments and the nation’s net zero target by 2050.

This transaction marks another milestone in VPBank’s long-term journey to become a leader in sustainable finance in Vietnam. Earlier in the first half of 2025, VPBank published its first standalone sustainability report following international standards and successfully secured a record $1 billion syndicated green loan—the largest ever raised by a private entity in Vietnam.

Redisseminated by The Asian Banker