DFC committed to grant a loan worth $100 million to TPBank

One of Vietnam’s leading commercial banks, the Tien Phong Commercial Joint Stock Bank (TPBank), signed a Letter of Commitment for a $100 million loan with a seven-year term from the US Government’s Development Finance Corporation (DFC) in Hanoi during President Joe Biden’s visit to Vietnam.

On September 10, at TPBank’s headquarters and in the presence of Mr. John Kerry, the US Presidential Envoy for Climate Change, H.E. Marc E. Knapper, US Ambassador to Vietnam, and other US government officials, the DFC committed to providing a $100 million loan to TPBank with a seven-year term. The credit will target individual customers and micro, small and medium-sized enterprises (MSMEs) in Vietnam, including low-income female customers and women-owned and led businesses in Vietnam.

TPBank will disburse loans with preferential policies for suitable borrowers, focusing on digital channels. Vietnamese individuals and businesses can easily access capital with preferential interest rates to improve their finances and expand their business, thereby promoting economic development. This is consistent with the DFC’s goal of boosting economic growth and promoting private sector development in emerging markets.

The loan will help individuals and businesses more conveniently access funds at reasonable cost. It aligns with TPBank’s overall strategy for comprehensive financial development as well as the State Bank of Vietnam (SBV)’s direction and the Vietnamese Government’s comprehensive national financial strategy. The bank will contribute to expanding access to financial services and financial opportunities for customers, creating conditions to enhance financial capacity and income and helping MSMEs improve their resources for development.

As a leader in pioneering digitization, 80 per cent of TPBank’s new customers open accounts through digital channels, and its application on smartphones maintains a high rate of regular use that has risen four to five-fold over the past five years thanks to a network of links covering all financial and payment needs of customers in education, health, entertainment, public services, payment of fines, and e-wallets, etc.

TPBank has had the best digital ecosystem for three consecutive years, according to Asian Banker. With strong support in technology, access to and use of various safe and secure financial services are made available, providing individuals and SMEs with opportunities to access simple and secure capital as well as actively use capital resources for reinvestment, capital contributions, and business activities. During its decade-long digital transformation journey, TPBank has understood the need to create products and technology applications that are convenient and simple for customers.

Mr. Do Anh Tu, Vice Chairman of TPBank’s Board of Directors, said digital transformation for sustainable development has been one of TPBank’s consistent directions throughout its decade of transformation and digitization. “The bank uses technology to offer funding to more customers while providing the most convenient and easy-to-use financial services for people and businesses and ensuring safety and security,” he added. “I believe that the credit received through the DFC will bring significant results, enhancing resources for TPBank to continue to provide funds to customers and people who need them, contributing to building a sustainable society.”

DFC’s commitment to providing the $100 million loan coincides with US President Joe Biden’s visit to Vietnam, demonstrating the strong and trusting bilateral relationship between the US and Vietnam. This commitment is an important step for TPBank, demonstrating its financial credibility and breakthrough measures, joining the group of leading banks in Vietnam, asserting its pioneering position in the digital transformation journey, and bringing financial services to all people and customers, contributing to the country’s economic development.

Moody’s Investors Service recently upgraded TPBank’s credit rating to Ba3, with a stable outlook, affirming the bank’s financial strength, good risk control, and long-term development prospects.

DFC is the US Government’s development finance organization. It cooperates with the private sector to finance solutions to the most critical challenges facing developing countries. The organization invests in various sectors, including energy, healthcare, infrastructure, agriculture, small business, and financial services. Its investments adhere to high standards and respect the environment, human rights, and the rights of workers.