DFC pledges $300-million bilateral loan to VPBank for sustainable finance

Leaders of the US International Development Finance Corporation and VPBank sign the commitment letter for a $300-million bilateral loan in Hanoi, Vietnam

The loan arranged by DFC aims at improving small- and medium-sized enterprises’ (SMEs) access to finance, especially women-owned, women-led, and climate-focused SMEs in Vietnam.

The signing ceremony of the commitment letter between DFC and VPBank was held at VPBank’s headquarters in Hanoi the morning of September 10, witnessed by US Ambassador to Vietnam Marc Knapper, Special Presidential Envoy for Climate John Kerry, DFC CEO Scott Nathan, and VPBank Chairman Ngo Chi Dzung, along with other leaders of both organisations.

DFC, the US government’s development finance institution, was established in 2019 under the Better Utilization of Investments Leading to Development Act and focuses on bringing private capital to the developing world. DFC’s mission is to promote US diplomatic policies and catalyse investment in private sector-led development.

The signing ceremony took place within the framework of the official visit of US President Joe Biden to Vietnam from September 10 to 11, on the 10^th anniversary of Vietnam-US comprehensive partnership, demonstrating the two countries’ positive and increasingly tightened cooperative relationship in many areas.

Scott Nathan, CEO of DFC, speaks at the ceremony for the commitment letter signing between DFC and VPBank

The approval of the loan from DFC, a US government agency with international standards and prudent credit appraisal standards and processes, to VPBank has once again affirmed VPBank’s position as the market-leading commercial bank in Vietnam.

The $300-million loan comes with a seven-year tenure. This loan will serve as an important source of financing to help strengthen VPBank’s capital base, which in turn will promote sustainable lending activities in line with the bank’s growth strategy.

These include supporting SMEs, women-owned or women-led SMEs, as well as shifting the bank’s portfolios towards climate-focused and low-carbon technology projects.

Over the past years, VPBank has been one of the leading banks in Vietnam that move ahead with environmental, social and climate contribution through developing and acting on a sustainable and consistent financial development strategy with clear awareness of accountable lending principles.

Prior to the loan extended by DFC, VPBank has been able to secure a number of large-sized syndicated loans worth over a billion of dollars since 2020 from reputable lenders worldwide.

In particular, VPBank has lately fruitfully mobilised a $500-million syndicated loan at the end of 2022 with five reputable financial institutions: the Asian Development Bank, Sumitomo Mitsui Banking Corporation (SMBC), Japan International Cooperation Agency, ANZ Bank and Maybank Securities Pte. Ltd.

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