VPBank secures landmark $350 million deal to drive sustainable development

 Vietnam Prosperity Joint Stock Commercial Bank (VPBank) has signed a landmark $350 million loan agreement with a consortium of international partners including Sumitomo Mitsui Banking Corporation (SMBC), British International Investment (BII), Export Finance Australia (EFA), Development Finance Institute Canada (FinDev Canada), and the Japan International Cooperation Agency (JICA). SMBC acted as the Coordinator and Mandated Lead Arranger for the deal.

The signing ceremony took place at VPBank’s headquarters in Hanoi, attended by the Ambassadors of the United Kingdom, Australia, and Japan, along with senior diplomatic representatives from the Canadian Embassy and top executives from the participating financial institutions. VPBank’s leadership, including the Chairman of the Board of Directors and Chief Executive Officer, were also present.

Valued at $350 million (approximately VND9.1 trillion) and set over a five-year term, the facility represents a significant boost to VPBank’s sustainable finance strategy. The funding will be used to support projects across three key areas: social finance, green finance, and essential infrastructure development, aligned with Vietnam’s broader national goals of inclusive economic growth, green transition, and 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,” said Mr. Nguyen Duc Vinh, Chief Executive Officer of VPBank. “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.”

The loan proceeds will be allocated toward climate-friendly projects supporting Vietnam’s net-zero 2050 targets; to small and medium-sized enterprises (SMEs), especially women-led businesses, in line with the global 2X Challenge for gender equality; and to vital infrastructure projects in underserved areas, enhancing access to healthcare, education, sanitation, clean water, and affordable housing.

This deal marks one of the largest multi-agency financings ever for a Vietnamese joint stock commercial bank. It also represents BII’s first direct debt investment in Vietnam and EFA’s first on-lending facility in the Southeast Asia financial sector.

Beyond capital provision, the partnership introduces international best practices and strengthens VPBank’s connectivity with global financial institutions, leveraging networks from the U.K., Australia, Canada, and Japan.

Mr. Carsten Stoehr, Executive Officer and Deputy Head of Asia Pacific Division at SMBC, commented: “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 positive impact on local communities and emerging markets. Creating social value is central to SMBC’s mission and this transaction which supports multiple UN SDGs embodies our commitment.”

British International Investment (BII) underscored the significance of the deal as part of its climate finance strategy for Southeast Asia. “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,” said Mr. Srini Nagarajan, Managing Director and Head of Asia at BII. “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 supporting climate-responsible business operations and bolstering Vietnam’s green energy transition, which is crucial for its net-zero 2050 goals, for enduring positive growth.”

Mr. John Hopkins, Managing Director & CEO of Export Finance Australia, framed the agreement as a pivotal moment in the agency’s growing engagement across Southeast Asia. “By working with VPBank and other international lenders, we’re supporting the delivery of green and essential infrastructure across the region,” he said.

For FinDev Canada, the deal aligns closely with its Indo-Pacific investment focus. Mr. Paulo Martelli, Vice President and Chief Investment Officer of FinDev Canada, emphasized: “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 lasting positive impact in Vietnam.”

JICA highlighted its continued collaboration with VPBank through the SMBC-JICA Sustainable Finance Framework. Mr. Shigeo Honzu, Senior Deputy Director General, Private Sector Partnership and Finance Department, JICA, noted: “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.”

With the backing of global development finance institutions, VPBank is reinforcing its “Sustainable Prosperity” strategy guided by ESG principles. This initiative follows the bank’s earlier achievements in 2025, including the publication of its first standalone Sustainability Report aligned with international standards and securing a record-setting $1 billion syndicated green loan, the largest ever raised by a private Vietnamese enterprise.