TPBank agrees US$50 million DEG financing for green lending and SMEs
The five-year loan assigns 60% to green projects, with the rest supporting smaller businesses, especially those owned or led by women.
Vietnam's TPBank and German development financier DEG signed a US$50 million borrowing agreement on October 20. The five-year facility will finance environmentally sustainable projects and lending to small and medium-sized enterprises (SMEs).
Of the financing, US$30 million is earmarked for qualifying green projects, including work on cutting emissions and transitioning energy systems. SMEs will receive the other US$20 million, with priority given to businesses under women's ownership or leadership.
DEG, a KfW Group subsidiary, will also offer technical support for TPBank's Environmental and Social Risk Management System (ESMS). Assistance will encompass employee training, lending assessment and monitoring procedures, internal policies and tools to classify risks. The aim is to strengthen environmental and social risk oversight across lending and align the bank's practices with international sustainability standards.
TPBank CEO Nguyen Hung said the partnership would broaden the bank's overseas funding sources, increase access to longer-term dollar financing and support sustainable lending. It would also help embed environmental, social and governance standards in operations, he said.
This is DEG's second investment in TPBank. Their previous financing arrangement concentrated on access to capital for women-owned businesses; the new deal extends the relationship into green lending and the management of environmental and social risks.
