DFC pledges $300M loan to VPBank

The loan arranged by the U.S. International Development Finance Corporation (DFC) aims at improving SMEs access to finance, especially women-owned, women-led, and climate-focused SMEs in Vietnam.

The signing ceremony was held at VPBank's headquarters in Hanoi on Sunday, witnessed by Marc Knapper, the U.S. Ambassador to Vietnam; John Kerry, the Special Presidential Envoy for Climate; Scott Nathan, CEO of DFC; and Ngo Chi Dzung, Chairman of VPBank, along with other leaders of both organizations.

It took place within the state visit of U.S. President Joe Biden to Vietnam on the 10^th anniversary of the Vietnam-U.S. comprehensive partnership, demonstrating the two countries' positive and increasingly tight cooperative relationship.

Scott Nathan, CEO of DFC, delivering the remark at the ceremony held at the bank’s headquarters in Hanoi on September 10. Photo courtesy of VPBank

The approval of the loan from DFC to VPBank has affirmed VPBank’s position as one of the market-leading commercial banks in Vietnam.

The $300 million 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 and women-owned or women-led SMEs, as well as shifting the bank's portfolios towards climate-focused and low-carbon technology projects.

Leaders of DFC and VBank signing the commitment letter for a USD300 million bilateral loan in Hanoi on September 10. Photo courtesy of VPBank

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

Prior to the loan extended by DFC, VPBank had been able to secure a number of large syndicated loans worth over $1 billion since 2020 from reputable lenders worldwide.

VPBank has lately fruitfully mobilized a $500 million syndicated loan at the end of 2022 with five reputable financial institutions, namely the Asian Development Bank, Sumitomo Mitsui Banking Corporation, Japan International Cooperation Agency, ANZ Bank, and Maybank Securities Pte. Ltd.

DFC was established in 2019 under the Better Utilization of Investments Leading to Development (BUILD) Act and focuses on bringing private capital to the developing world. Its mission is to promote U.S. diplomatic policies and catalyze investment in private sector-led development.