in

VPBank obtains $300m loan from US International Development Finance Corporation

Vietnam Prosperity Joint Stock Commercial Bank (VPBank) and the US International Development Finance Corporation (DFC) have signed a commitment letter for a bilateral loan worth $300 million. The loan, with a duration of seven years, aims to improve financial accessibility for small and medium-sized enterprises (SMEs) in Vietnam, particularly those led or owned by women and businesses focused on climate solutions.

The signing ceremony was attended by dignitaries including the US Ambassador to Vietnam Marc Knapper, Special Presidential Envoy for Climate John Kerry, DFC CEO Scott Nathan, and VPBank Chairman Ngô Chí Dũng, as well as leaders from both institutions.

Established in 2019 under the Better Utilization of Investments Leading to Development (BUILD) Act, DFC operates as the US government’s developmental finance entity. Its main mission is to allocate private capital to the developing world, aligning with US diplomatic policies and promoting private sector-led development.

This agreement coincides with US President Joe Biden’s official visit to Vietnam on the 10th anniversary of the Vietnam-US comprehensive partnership. It highlights the strengthening ties and expanding cooperation between the two countries.

DFC’s decision to provide the loan to VPBank confirms the bank’s reputation as a top-tier commercial bank in Vietnam. The substantial loan, equivalent to VNĐ7.2 trillion, will enhance VPBank’s capital reserves, enabling it to support sustainable lending programs in line with its expansion strategy.

The focus areas of the loan include SMEs, particularly those owned by women, and projects that prioritize climate considerations and low-carbon technologies.

VPBank has been a leader in Vietnam in promoting eco-friendly, social, and climate-conscious initiatives. The bank has consistently demonstrated its commitment to sustainability and responsible lending.

The partnership with DFC adds to VPBank’s impressive track record of securing substantial syndicated loans from global lenders. In 2022, VPBank successfully raised a $500 million syndicated loan from prominent financial institutions, including the Asian Development Bank (ADB), Sumitomo Mitsui Banking Corporation (SMBC), Japan International Cooperation Agency (JICA), ANZ Bank, and Maybank Securities Pte Ltd.

Follow crowdfundingmagazine on Instagram: @crowdfundingmagazine_it

What do you think?

363 Points
Upvote Downvote

Written by editorial

Leave a Reply

Your email address will not be published. Required fields are marked *

Australia: UnionPay collaborates with NBC Badminton to unveil an exclusive prepaid card for enthusiasts

NYSE Chairman Jeffrey Sprecher Takes Bold Steps to Simplify Mortgage Process