VPBank signs maiden $1.44 billion sustainability-linked loan

VPBank signs maiden $1.44 billion sustainability-linked loan

VPBank has signed its first sustainability-linked loan, totalling $1.44 billion, with 15 international financial institutions acting as Mandated Lead Arrangers, Underwriters, and Bookrunners (MLAUBs).

VPBank representatives and partners at the signing ceremony. Photo: VPBank

The agreement was signed on June 30. The facility increased from $1.2 billion to $1.44 billion following strong demand during general syndication, with a three-year tenor. The loan is structured as a sustainability-linked loan (SLL), with financial terms tied to VPBank's performance against annual sustainability performance targets related to expanding lending to green and social sectors.

Performance against these targets will determine adjustments to financial terms under the agreements with the MLAUBs and other lenders.

Sumitomo Mitsui Banking Corporation (SMBC) played a central role in the transaction as Coordinator, MLAUB, Facility Agent, and Sustainability Coordinator. This collaboration further reinforces the long-standing strategic partnership between VPBank and SMBC, while enhancing VPBank’s standing in regional and international financial markets.

Alongside existing partners that have previously acted as Mandated Lead Arrangers, Underwriters and Bookrunners, including Australia and New Zealand Banking Group, Cathay United Bank, Commerzbank, CTBC Bank, Mashreq Bank, Maybank Securities, and Standard Chartered Bank, the transaction also attracted several new-to-bank and existing financial institutions that pivoted to lead roles, including First Abu Dhabi Bank, Landesbank Baden-Württemberg, National Bank of Kuwait, Oversea-Chinese Banking Corporation Limited, Taipei Fubon Commercial Bank, HSBC, and The Bank of East Asia, accounting for nearly half of the participating institutions.

With the partnership of 15 international financial institutions, this facility represents VPBank’s largest-ever transaction in terms of the number of MLAUBs involved. The scale of the transaction and the breadth of participation underscore the strong confidence of the international financial community in VPBank’s financial strength, growth prospects and sustainable development orientation.

In addition to the MLAUBs, the transaction also received strong market support, with participation from 19 international financial institutions following a series of investor roadshows in two major regional financial markets, Singapore and Taiwan.

"This $1.44 billion syndicated loan, supported by 15 leading global financial institutions, is a clear testament to the strong confidence that the international financial community places in VPBank," said Nguyen Duc Vinh, CEO of VPBank. "It also marks an important step forward in the bank's implementation of sustainability-linked financing instruments, serving as both an affirmation of our commitment and a catalyst for VPBank to further contribute to sustainable growth objectives, institutionalise environmental, social and governance (ESG) goals, create long-term value for shareholders and customers, and make positive contributions to society."

Despite ongoing geopolitical uncertainties, escalating tensions in the Middle East, and tighter liquidity conditions in global financial markets, the transaction secured commitments from several leading financial institutions in the Middle East, including FAB, Mashreq, NBK, Arab Bank for Investment and Foreign Trade and Doha Bank. Their participation is a strong testament to VPBank’s growing reputation and standing in international capital markets.

The successful completion of the transaction marks an important milestone in VPBank’s strategy to diversify its medium- and long-term funding sources, providing momentum for the bank to pursue its ambitious growth objectives in 2026. It also significantly expands VPBank’s network of financial partners, laying a strong foundation for the bank to access large-scale offshore funding in the future, support sustainable growth, and deliver on the sustainability commitments embedded in the SLL framework.

The facility also marks a new milestone in VPBank’s long-term journey, further reinforcing the integration of sustainability into its financial strategy, in line with Vietnam’s transition towards a low-carbon and inclusive economy.

In recent years, VPBank has advanced its sustainable development strategy by integrating ESG standards into its business operations, expanding green finance and enhancing access to high-quality international funding sources.

In 2025, the bank successfully secured its largest-ever international syndicated loan of $1.56 billion, and issued $300 million in international sustainable bonds, bringing its total international fundraising volume to $2.36 billion.

VIR