VPBank secures maiden $1.44bn sustainability-linked loan from 15 banks

Vietnam Prosperity Joint Stock Commercial Bank (VPBank) has secured its inaugural sustainability-linked syndicated loan, raising $1.44 billion from a consortium of 15 international financial institutions acting as Mandated Lead Arrangers, Underwriters, and Bookrunners (MLAUBs).

The three-year facility, signed on June 30, was increased from an initial target of $1.2 billion following robust demand during general syndication. The loan is structured with financial terms tied to VPBank's performance against specific annual targets for expanding its lending portfolio in green and social sectors. Adjustments to the loan's financial terms will be contingent on meeting these sustainability performance metrics.

Sumitomo Mitsui Banking Corporation (SMBC) played a central role as the Coordinator, MLAUB, Facility Agent, and Sustainability Coordinator for the transaction. The deal reinforces the strategic partnership between VPBank and SMBC.

The syndicate of 15 MLAUBs, the largest in VPBank's history, included both returning and new partners. Long-standing partners participating as MLAUBs included Australia and New Zealand Banking Group, Cathay United Bank, Commerzbank, CTBC Bank, Mashreq Bank, Maybank Securities, and Standard Chartered Bank. The transaction also attracted new institutions and existing partners stepping into lead roles, such as First Abu Dhabi Bank, Landesbank Baden-Württemberg, National Bank of Kuwait, Oversea-Chinese Banking Corporation Limited, Taipei Fubon Commercial Bank, HSBC, and The Bank of East Asia.

Beyond the lead arrangers, the deal garnered wide market support, with an additional 19 international financial institutions joining the facility following investor roadshows in Singapore and Taiwan. The scale of the transaction and the breadth of participation signal strong investor confidence in VPBank's financial standing and sustainable development strategy.

"This $1.44 billion syndicated loan, supported by 15 leading global financial institutions, is a clear testament to the strong confidence that the international financial community places in VPBank," said Nguyen Duc Vinh, CEO of VPBank. "It also marks an important step forward in the bank's implementation of sustainability-linked financing instruments, serving as both an affirmation of our commitment and a catalyst for VPBank to further contribute to sustainable growth objectives, institutionalise environmental, social and governance (ESG) goals, create long-term value for shareholders and customers, and make positive contributions to society."

The successful fundraising comes amid a challenging global environment marked by geopolitical uncertainties, heightened tensions in the Middle East, and tighter liquidity in financial markets. Notably, the deal secured commitments from several prominent Middle Eastern institutions, including FAB, Mashreq, NBK, Arab Bank for Investment and Foreign Trade, and Doha Bank, underscoring VPBank's expanding reach in international capital markets.

This transaction is a key milestone in VPBank’s strategy to diversify its medium- and long-term funding sources to support its growth objectives for 2026. It also expands the bank's network of financial partners, creating a foundation for future large-scale offshore funding initiatives. The facility reinforces the integration of sustainability into VPBank’s financial strategy, aligning with Vietnam’s national goal of transitioning to a low-carbon and inclusive economy.

In recent years, VPBank has increasingly integrated ESG standards into its operations. In 2025, the bank raised a total of $2.36 billion from international markets, which included its largest-ever syndicated loan of $1.56 billion and a $300 million issuance of international sustainable bonds.