TPBank secures $50 million from DEG for green and SME lending

Photo: TPBank

Signed on October 20, the agreement diversifies TPBank's international funding structure and supports the upgrade of its Environmental and Social Risk Management System in line with global standards.

Under the agreement, the five-year loan will be disbursed by TPBank on a targeted basis into two strategic priorities. 60 per cent of the facility ($30 million) will be prioritised for green projects, emission reduction, and energy transition, directly contributing to Vietnam’s climate change response goals.

The remaining 40 per cent ($20 million) will continue to provide practical support for small and medium-sized enterprises (SMEs), with a focus on women-owned or women-led business models.

In parallel with the financing, DEG will partner with TPBank on a technical assistance project to comprehensively upgrade its Environmental and Social Risk Management System. The programme aims to strengthen the bank’s capacity to identify, assess, and monitor environmental and social risks throughout the credit lifecycle.

This includes standardising policies, classification tools, and the appraisal and monitoring processes for environmental and social risks in credit granting, together with in-depth training for staff, helping TPBank fully meet the stringent sustainability standards of global institutions.

The 2026 transaction is DEG’s second investment in TPBank, building on the success of their previous cooperation in supporting access to capital for women-owned businesses, while expanding the focus of the partnership to green finance. The agreement reflects the shared commitment of both parties to encouraging sustainable growth, supporting Vietnam’s green transition, and improving access to capital for businesses pursuing sustainable development goals.

The continued trust of DEG in extending the facility is a clear testament to the bank’s capital absorption capacity and transparent financial health.

Speaking at the event, Monika Beck, member of DEG's Management Board, said, "Vietnam continues to be a strategic market for DEG. TPBank has established itself as a trusted partner through its strong commitment to good governance, digital transformation, and customer-focused growth. This $50 million facility represents the next step in our cooperation. Sixty per cent will be allocated to eligible green projects, advancing Vietnam's sustainable development and climate objectives, while 40 per cent will support SMEs, with a strong focus on women-owned and women-led businesses."

The $50 million facility marks the strong partnership between both institutions, and is expected to create momentum for the development of SMEs, enhance the position of women entrepreneurs, and contribute positively to Vietnam’s green growth objectives.

Nguyen Hung, CEO of TPBank, said, "DEG's many years of partnership help TPBank increase its medium- and long-term USD funding and diversify its international capital structure, and serve as an endorsement of the bank's transparent governance. This is a strategic lever for TPBank to unlock green credit, expand access to capital for SMEs, especially women-owned businesses, and gradually integrate environmental, social, and governance standards deeply into practice, supporting the nation's Net Zero goal."

TPBank has previously raised a $220 million long-term loan from the US International Development Finance Corporation and the Japan International Cooperation Agency, alongside cooperation programmes with the Asian Development Bank, the International Finance Corporation, and others. The additional funding from DEG reinforces the bank's role as a bridge between international financial institutions and the Vietnamese business community on the path towards sustainable development.

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