DFC, TPBank sign $100M loan commitment

Tien Phong Commercial Joint Stock Bank (TPBank) has announced the signing of a letter of commitment for a US$100 million loan with a 7-year tenor from the DFC.

The signing ceremony took place in Hanoi on Sunday, in the presence of John Kerry, the U.S. Presidential Envoy for Climate Change; Marc E. Knapper, the U.S. Ambassador to Vietnam; and other U.S. government officials.

The credit will target individual customers and micro, small, and medium-sized enterprises in Vietnam, including low-income female customers and women-owned and led businesses in Vietnam.

TPBank and DFC's representatives at a commitment letter signing ceremony on September 10, 2023. Photo courtesy of TPBank

TPBank will disburse loans with preferential policies for suitable targets, focusing on digital channels.

Vietnamese individuals and businesses will easily access capital with preferential interest rates to improve their finances, expand their businesses, and thereby promote economic development. This is consistent with the DFC’s goal of economic growth and promoting private sector development in emerging markets.

TPBank’s commitment to receiving a loan from the U.S. Government’s organization aligns with the bank’s overall strategy for comprehensive financial development as well as the State Bank of Vietnam’s direction and the Vietnamese Government’s comprehensive national financial strategy.

The bank will contribute to expanding access to financial services and financial opportunities for customers, creating conditions to enhance financial capacity and income, and supporting micro, small, and medium-sized enterprises to improve their resources for development.

As one of the leading banks in digitization, TPBank has seen a significant increase in smartphone usage over the past five years, with its network covering various financial and payment needs.

It also has been one of the top digital ecosystem owners for three consecutive years, offering secure financial services, capital access, and opportunities for reinvestment and business activities.

During its decade-long digital transformation journey, the bank has always understood the need to create products and technology applications that are convenient and simple for customers.

DFC and TPBank representatives at the signing ceremony. Photo courtesy of TPBank

According to Do Anh Tu, Vice Chairman of TPBank’s Board of Directors, digital transformation for sustainable development is one of TPBank’s consistent directions throughout the decade of transformation and digitization.

"I believe that the credit received through DFC will bring significant results, enhancing resources for TPBank to continue to spread funds to customers and people who need them, contributing to building a good and sustainable society," Tu said.

DFC's commitment to providing a loan of $100 million is an important for TPBank, demonstrating its financial credibility and breakthroughs, asserting its pioneering position in 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, good risk control, and long-term development prospects.

DFC collaborates with the private sector to finance solutions to the most critical challenges facing developing countries.

The organization invests in various sectors, including energy, healthcare, infrastructure, agriculture, small businesses, and financial services. DFC's investments adhere to high standards and respect for the environment, human rights, and the rights of workers.