Photo: VGP
The loan organized by the US government’s development financing agency intends to improve access to funding for Small and Medium-sized Enterprises (SMEs), particularly women-owned, women-led, and climate-focused SMEs in Vietnam.
The signing ceremony of the Commitment Letter between DFC and VPBank was held at VPBank’s headquarters in Hanoi the morning of September 10, 2023, witnessed by U.S. Ambassador to Viet Nam Marc Knapper, Special Presidential Envoy for Climate John Kerry, DFC CEO Scott Nathan, and VPBank Chairman Ngo Chi Dung, along with other leaders of both organizations.
The signing ceremony took place during US President Joe Biden’s official visit to Vietnam from September 10-11, marking the 10th anniversary of the Viet Nam-US comprehensive partnership, demonstrating the two countries’ positive and increasingly tightened cooperative relationship in many areas.
DFC’s loan clearance to VPBank, a US government agency with international standards and cautious credit appraisal norms and processes, has reaffirmed VPBank’s position as Vietnam’s market-leading commercial bank.
The $300 million loan has a seven-year term. This loan will be a significant source of financing for VPBank, helping to build its capital basis and encourage sustainable lending activities in line with the bank’s growth strategy.
DFC, the U.S. government’s development finance institution, 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. DFC’s mission is to promote US diplomatic policies and catalyze investment in private sector-led development.
Over the past years, VPBank has always been one of the leading banks in Viet Nam that move ahead with environmental, social and climate contribution through developing and acting on a sustainable and consistent financial development strategy with clear awareness of accountable lending principles.
Prior to the loan extended by DFC, VPBank has been able to secure a number of large-sized syndicated loans worth over a billion of dollars since 2020 from reputable lenders worldwide.
In particular, 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 (ADB), Sumitomo Mitsui Banking Corporation (SMBC), Japan International Cooperation Agency (JICA), ANZ Bank and Maybank Securities Pte. Ltd.
DFC, the U.S. government’s development finance institution, 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. DFC’s mission is to promote US diplomatic policies and catalyze investment in private sector-led development.
Source: VGP
