Vietnam Prosperity Joint Stock Commercial Bank ( VPBank ), alongside Sumitomo Mitsui Banking Corporation ( SMBC ) and partner development finance institutions ( DFIs ) and bilateral agencies – among them, the Japan International Cooperation Agency, Development Finance Institute Canada, Export Finance Australia ( EFA ) and British International Investment ( BII ) – have signed a US$350 million term loan facility.

SMBC acted as coordinator and mandated lead arranger for this financing. The signing ceremony was held at VPBank’s headquarters in Hanoi with the presence of the ambassadors and embassy representatives of the Australia, Canada, Japan and the UK, along with senior representatives from the participating financial institutions.

The US$350 million loan ( equivalent to approximately 9.1 trillion dong ), with a five-year maturity, serves 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.

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 collaboration, involving four bilateral agencies, 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, it points out, 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.

“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,” states Nguyen Duc Vinh, the bank’s CEO. “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.”