VPBank clinches $350m loan to fund sustainable finance strategy

It will be allocated for green projects, SMEs, and infrastructure projects in underserved areas.

Vietnam Prosperity Joint Stock Commercial Bank (VPBank), alongside Sumitomo Mitsui Banking Corporation (SMBC) and partner development finance institutions and bilateral agencies, have signed a $350m term loan facility.

VPBank said that the loan— which has a five-year maturity— will serve as a “significant funding source” for its sustainable finance strategy.

Proceeds will be allocated to green projects that support Vietnam’s commitment to achieving net zero emissions by 2050.

It will also be allocated 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.

SMBC acted as coordinator and mandated lead arranger for this financing.

Agencies included in the arrangement are the Japan International Cooperation Agency (JICA), Development Financial Institute Canada (FinDev Canada), Export Finance Australia (EFA), and the British International Investment (BII).