TPBank, one of Vietnam’s leading commercial banks, has announced the signing of a letter of commitment for a $100 million loan with a 7-year term from the US government’s Development Finance Corporation (DFC).
The signing ceremony took place in Hanoi on September 10, during President Joe Biden’s visit to Vietnam, in the presence of John Kerry, the US Presidential Envoy for Climate Change, Marc E. Knapper, the US Ambassador to Vietnam, and other US government officials.
The credit will target individual customers, micro, small and medium-sized enterprises, including low-income female customers and women-owned and led businesses in the country.
As a result, Vietnamese individuals and businesses will have easier access to capital with preferential interest rates to grow their businesses and develop the economy. This is consistent with DFC’s goal of encouraging economic growth and private sector development in emerging markets.
|This deal aligns with TPBank’s overall strategy of comprehensive financial development, as well as SBV and the Vietnamese government’s comprehensive national financial strategy. |
This deal aligns with TPBank’s overall strategy of comprehensive financial development, as well as the State Bank of Vietnam and the Vietnamese government’s comprehensive national financial strategy.
TPBank will disburse loans with preferential policies for suitable targets with a focus on digital banking, as currently 80 per cent of new customers open accounts through digital channels, and the bank application on smartphones maintains a high rate of regular usage, increasing by 4–5 times over the past five years.
TPBank has owned the top digital ecosystem for three consecutive years, according to Asian Banker. With the strong support of technology, customers have access to various safe and secure financial services with opportunities to secure capital resources for reinvestment, capital contributions, or various other 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.
“Digital transformation for sustainable development has been one of TPBank’s consistent directions throughout this decade of digitalisation,” said Do Anh Tu, vice chairman of TPBank’s Board of Directors. “I believe that the credit received through DFC will bring significant results, enabling TPBank to continue to distribute funds to the people who need them and contribute to building a sustainable society.”
DFC’s commitment to providing the $100 million loan package coincides with US President Joe Biden’s visit to Vietnam, demonstrating the strong and trusting bilateral relationship between the two countries. This commitment is an important step for TPBank, demonstrating its financial credibility, as it joins the group of top banks in Vietnam and asserts its pioneering position at the head of the digital transformation journey.
Moody’s Investors Service has recently upgraded TPBank’s credit rating to Ba3, with a stable outlook, affirming the bank’s financial strength, risk control, and long-term development prospects.
DFC is the US government’s development finance organisation. It collaborates with the private sector to finance solutions to the most critical challenges facing developing countries. The organisation invests in various sectors, including energy, healthcare, infrastructure, agriculture, small businesses, and financial services. DFC’s investments adhere to the highest standards and respect the environment, community, and workers' rights.
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