VPBank secures $350 million loan facility from SMBC, partner DFIs, and bilateral agencies

VPBank secures $350 million loan facility from SMBC, partner DFIs, and bilateral agencies

VPBank signed a $350 million loan facility on July 29 with Sumitomo Mitsui Banking Corporation (SMBC), partner development finance institutions (DFIs), and bilateral agencies.

The DFIs and bilateral agencies include British International Investment (BII), Export Finance Australia (EFA), Development Finance Institute Canada (FinDev Canada), and the Japan International Cooperation Agency (JICA). SMBC acted as coordinator and mandated lead arranger for the financing.

The $350 million loan (equivalent to approximately VND9.1 trillion), with a five-year maturity, will serve 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 DFIs 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 will also support Vietnamese enterprises – particularly women-led businesses – in their global expansion and help improve quality of life through essential infrastructure development,” said Nguyen Duc Vinh, CEO of VPBank.

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, BII, EFA, FinDev Canada, and JICA. This transaction demonstrates the importance of partnerships to create a positive impact on local communities and emerging markets.” said Carsten Stoehr, executive officer, deputy head of the Asia-Pacific division at SMBC. “Creating social value is central to SMBC’s mission and this transaction, which supports multiple UN Sustainable Development Goals, embodies our commitment.”

“Vietnam is a priority market for BII to deliver climate finance to countries in Southeast Asia that relies predominantly on fossil fuels as a source of energy generation. We are delighted to partner with VPBank, SMBC, and other co-lenders on this landmark syndicated facility, which is our first direct debt investment in Vietnam. Our support will focus on climate-responsible business operations and bolstering Vietnam’s green energy transition, which is crucial for its net-zero 2050 goals, and for enduring positive growth,” said Srini Nagarajan, managing director and head of Asia at BII.

“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 EFW. “By working with VPBank and other international lenders, we’re supporting the delivery of green and essential infrastructure across the region.”

“Our investment in support of Vietnam’s climate sector aligns perfectly with our Indo-Pacific investment strategy. 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 a lasting positive impact in Vietnam,” said Paulo Martelli, VP and chief investment officer of FinDev Canada.

“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 of private sector partnerships and the finance department at JICA.

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 is another milestone in VPBank’s long-term journey to become a leader in sustainable finance in Vietnam.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.

VIR