Vietnam Prosperity Joint Stock Commercial Bank (VPBank) alongside Sumitomo Mitsui Banking Corporation (SMBC) and partner Development Finance Institutions (DFIs) and bilateral agencies, including British International Investment (BII), Export Finance Australia (EFA), Development Finance Institute Canada (FinDev Canada), and the Japan International Cooperation Agency (JICA) have announced the successful signing of a USD350-million term loan facility. SMBC acted as Coordinator and Mandated Lead Arranger for this financing.
The signing ceremony was held at VPBank’s headquarters in Hanoi, with the presence of the Ambassadors of the United Kingdom, Australia, Japan, Head of the Development Cooperation Department of the Canadian Embassy in Vietnam, senior diplomatic representatives from the embassies, and high-level representatives from the participating financial institutions. Representing VPBank were the Chairman of the Board of Directors, the Chief Executive Officer, and other senior executives of the bank.
The USD350-million loan (equivalent to approximately VND9.1 trillion), with a five-year maturity, serves as a significant funding source to support VPBank’s sustainable finance strategy focusing on three key pillars: social finance, green finance, and financing for essential infrastructure development. This financing commitment further supports Vietnam’s national objectives to foster inclusive economic development, green growth, and critical infrastructure expansion.
“This successful funding from leading Development Finance Institutions and bilateral agencies reaffirms VPBank’s financial strength, long-term strategic vision and strong international reputation in sustainable finance. The facility will allow the Bank to expand its green and social lending portfolios while demonstrating a strong commitment to inclusive growth. It also supports Vietnamese enterprises—particularly women-led ones—in their global expansion and helps improve the quality of life through essential infrastructure development,” stated Mr. Nguyen Duc Vinh, Chief Executive Officer, VPBank.
The money will be allocated to green projects that support Vietnam’s commitment to achieving net-zero emissions by 2050; to support small and medium-sized enterprises (SMEs), especially those owned or led by women, in line with the global 2X Challenge for gender equality; and to vital infrastructure projects in underserved areas, improving access to basic services such as healthcare, education, sanitation, clean water, and affordable housing.
This is a landmark collaboration involving four bilateral agencies and is one of the largest multi-agency financings for a Vietnamese joint stock commercial bank to-date. It is also the first direct debt investment by BII and first on-lending facility for EFA in the Southeast Asia Financial Institutions sector.
Working with these reputable partners not only provides VPBank with access to a stable, long-term source of funding but also fosters broader collaboration. By introducing international best practices, this can create opportunities for VPBank to connect Vietnamese enterprises with international institutions through the network of these bilateral agencies from the U.K., Australia, Canada and Japan.
“SMBC is very proud to have collaborated on this landmark facility with VPBank, BII, EFA, FinDev Canada and JICA. This transaction demonstrates the importance of partnerships to create positive impact on local communities and emerging markets.” said Mr. Carsten Stoehr, Executive Officer, Deputy Head of Asia Pacific Division, SMBC. “Creating social value is central to SMBC’s mission and this transaction which supports multiple UN SDGs embodies our commitment.”
“Vietnam is a priority market for BII to deliver climate finance to countries in Southeast Asia that relies predominantly on fossil fuels as a source of energy generation. We are delighted to partner with VPBank, SMBC and other co-lenders on this landmark syndicated facility, which is our first direct debt investment in Vietnam. Our support will focus on supporting climate-responsible business operations and bolstering Vietnam’s green energy transition, which is crucial for its net-zero 2050 goals, for enduring positive growth,” said Srini Nagarajan, Managing Director and Head of Asia, British International Investment.
“This facility marks a significant step forward in our engagement with Vietnam and banking partners across Southeast Asia,” said John Hopkins, Managing Director & CEO of Export Finance Australia. “By working with VPBank and other international lenders, we’re supporting the delivery of green and essential infrastructure across the region.”
“Our investment in support of Vietnam’s climate sector aligns perfectly with our Indo-Pacific investment strategy. We are proud to work with VPBank in expanding funding for enterprises, particularly women-led ones, through this syndicated facility. By collaborating with committed partners, we aim to strengthen climate action, advance inclusive and sustainable development, and create lasting positive impact in Vietnam,” said Paulo Martelli, VP and Chief Investment Officer, FinDev Canada.
“We are pleased to be part of this transaction with VPBank, in collaboration with the co-financiers, to support the expansion of sustainable finance in Vietnam. This marks our second cooperation with VPBank to enhance financial access for Women-owned Micro, Small, and Medium Enterprises (WMSMEs) under the SMBC-JICA Sustainable Finance Framework. We hope this project will further advance financial inclusion for WMSMEs and contribute to the sustainable development of the country,” said Mr. Shigeo Honzu, Senior Deputy Director General, Private Sector Partnership and Finance Department, JICA.
With the support of globally respected financial institutions, VPBank reinforces its pioneering role in directing capital to projects that bring positive environmental and social impacts, in line with its “Sustainable Prosperity” strategy guided by ESG principles. This marks another step in delivering on Vietnam’s sustainability commitments and the nation’s Net Zero target by 2050.
This transaction marks another milestone in VPBank’s long-term journey to become a leader in sustainable finance in Vietnam. Earlier in the first half of 2025, VPBank published its first standalone Sustainability Report following international standards and successfully secured a record USD1-billion syndicated green loan—the largest ever raised by a private entity in Vietnam.
About VPBank
Founded as one of Vietnam’s earliest joint-stock commercial banks, VPBank has maintained a track record of sustainable growth over the past 30 years. Today, VPBank ranks among the country’s leading commercial banks in terms of total assets, operational efficiency, and profitability. It is especially active in the retail and SME segments and is a frontrunner in digital transformation—delivering fast, accessible, and innovative financial solutions to its customers.
As of June 30, 2025, VPBank had total consolidated assets of exceeding VND1.1 quadrillion, making it one of the largest joint-stock commercial banks in Vietnam. The Bank also has one of the strongest capital positions among private banks, with total equity of more than VND152 trillion. VPBank continues to strengthen its balance sheet, creating a solid foundation for long-term and sustainable growth.
To learn more, please visit: https://www.vpbank.com.vn
About SMBC
Headquartered in Tokyo, Sumitomo Mitsui Banking Corporation (SMBC) is a leading global financial institution and a core member of Sumitomo Mitsui Financial Group (SMBC Group). Built upon our rich Japanese heritage since 1876, we put our customers first and provide seamless access to, from and within the Asia Pacific region.
SMBC is one of the largest Japanese banks by assets, with over ¥243,825 billion in total assets and strong credit ratings across our global integrated network spanning 39 countries and territories, 15 of which are here in the region. Our regional reach extends from corporate and institutional companies to individual customers supported by our Multi-Franchise Strategy in Indonesia, India, Vietnam and the Philippines. We work closely as one SMBC Group to offer personal, corporate and investment banking services to meet the needs of our customers.
With sustainability embedded within our strategy and operations, we are committed to creating a society in which today’s generation can enjoy economic prosperity and well-being, and pass it on to future generations.
To learn more, please visit: www.smbc.co.jp/asia
About BII
British International Investment is the UK’s development finance institution and impact investor. The organisation invests in businesses in developing countries to improve people’s lives and help protect the planet. BII’s work targets the underlying causes of poverty and the climate crisis, helping countries break free from aid dependency for good.
Between 2022-2026, at least 30 per cent of BII’s total new commitments by value will be in climate finance. BII is also a founding member of the 2X Challenge which has raised over $33.6 billion to empower women’s economic development. The company has investments in over 1,600 businesses across 70 countries and total net assets of £9.87 billion.
To learn more, please visit: www.bii.co.uk
About EFA
EFA is Australia’s export credit agency. EFA provides commercial finance for export trade and overseas investment and infrastructure development. From small and medium-sized enterprises to large corporates, foreign governments and infrastructure projects, it helps Australian businesses take on the world. In doing so, EFA finance supports Australia’s economic security and regional resilience.
EFA administers the Australian Government’s National Interest Account, which currently includes the Southeast Asia Investment Financing Facility, the Critical Minerals Facility, the Defence Export Facility and lending for the Australian Infrastructure Financing Facility for the Pacific. EFA also provides support to other Commonwealth entities, including Housing Australia and the Northern Australia Infrastructure Facility.
This is EFA’s first on-lending facility in Southeast Asia. Backed by the Australian Government’s Investment Deal Teams, it supports the implementation of Invested: Australia’s Southeast Asia Economic Strategy to 2040 and builds on the Comprehensive Strategic Partnership between Australia and Vietnam. Alongside its direct project financing, EFA is using on-lending to broaden its support for sustainable infrastructure and drive the region’s green energy transition.
To learn more, please visit: www.exportfinance.gov.au
About FinDev Canada
FinDev Canada is Canada’s bilateral Development Finance Institution (DFI), supporting development through the private sector. We provide financing, investment, and blended finance solutions, as well as technical assistance and advisory, to promote sustainable and inclusive growth in emerging markets and developing economies (EMDEs), in alignment with the Sustainable Development Goals (SDGs) and Paris Agreement commitments.
To learn more, please visit: www.findevcanada.ca
About JICA
JICA, an incorporated administrative agency in charge of administering Japan’s ODA, is one of the world’s largest bilateral aid agencies. JICA aims to contribute to the promotion of international cooperation as well as the sound development of Japanese and global economy by supporting the socioeconomic development, recovery or economic stability of developing regions.
To learn more, please visit: www.jica.go.jp
