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In Vietnam, Proparco supports VPBank in its commitment to SMEs and women’s entrepreneurship

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VPBank

• Proparco is providing a USD 70 million loan to Vietnam Prosperity Joint-Stock Commercial Bank (VPBank; HoSE: VPB), a long-standing financial institution partner and the largest private bank in Vietnam.
• Proparco’s financing is part of a USD 730 million syndicated loan arranged by the International Finance Corporation (IFC) and Sumitomo Mitsui Banking Corporation (SMBC), which will support VPBank’s efforts to expand access to finance for small and medium-sized enterprises (SMEs), with a particular focus on women-owned and women-led businesses.

The USD 730 million syndicated loan will enable VPBank to expand its financial support to these businesses, helping them meet working capital needs, expand production capacity and grow their operations. Under Proparco’s USD 70 million loan, 30% of the financing will be dedicated to women-owned and women-led SMEs, while the remaining 70% will support other SMEs in Vietnam. This gender-focused allocation makes Proparco’s financing eligible under the 2X Challenge.

Mr. Nguyen Duc Vinh, Chief Executive Officer of VPBank, stated: “The US$730 million facility further affirms the international financial community’s confidence in VPBank’s capabilities and development strategy. This funding allows us to strengthen our support for SME customers and WSMEs, turning our commitment to growth and sustainable development into tangible outcomes while creating long-term value for shareholders, customers and society”.

For Jean-Benoît du Chalard, Proparco’s Regional Director: “Today, we are taking our collaboration one step further. The longer tenor of this new transaction reflects our full trust in VPBank and our commitment to build a strong long-term partnership.”

The transaction was jointly coordinated and arranged by IFC and SMBC, bringing together a broad range of international financial institutions. Participating development finance institutions (DFIs) include IFC, DEG, Proparco and Norfund. Export credit agencies, international commercial banks and other financial institutions participating in the facility include China Eximbank and Korea Eximbank, SMBC, Punjab National Bank, Commercial Bank of Ceylon, ICBC, Shinhan Bank, Woori Bank and KEXIM Asia Limited.