DFC pledges US$300-million loan to VPBank to promote sustainable finance

Vietnam Prosperity Joint Stock Commercial Bank (VPBank) and the US International Development Finance Corporation (DFC) today inked a Commitment Letter on a bilateral loan worth US$300 million with a seven-year tenor. The loan arranged by DFC aims at improving Small- and Medium-sized Enterprises’ (SMEs) access to finance, especially 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 on the morning of September 10, 2023, witnessed by the U.S. 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. Prior to the loan being extended by DFC, VPBank has been able to secure a number of large-sized syndicated loans worth over a billion dollars since 2020 from reputable lenders worldwide.