VPBank secures US$730 million syndicated loan for SME financing
The facility includes three-, five- and seven-year tranches, with IFC and SMBC acting as joint arrangers.
Vietnam’s VPBank has secured an offshore syndicated loan of US$730 million to support financing for small and medium-sized enterprises. The bank marked the transaction with a ceremony and said funds had been disbursed through several drawdowns during 2026.
VPBank, formally Viet Nam Prosperity Joint-Stock Commercial Bank, said the funding would support working capital, production expansion and business growth for SMEs, including businesses owned or led by women and those in agriculture. The facility provides funding over three, five and seven years.
International Finance Corporation (IFC) and Sumitomo Mitsui Banking Corporation (SMBC) jointly arranged the transaction. Participants include development finance institutions DEG, Proparco and Norfund, alongside China Eximbank, Korea Eximbank and commercial lenders including Punjab National Bank, Shinhan Bank and Woori Bank.
Allen Forlemu, IFC’s Regional Director for Financial Institutions Group, Asia and the Pacific, said the financing included IFC’s first seven-year loan to a Vietnamese bank. He said mobilising private capital alongside IFC’s investment would increase the financing available to businesses.
IFC will also help VPBank develop its agricultural finance capabilities and extend financing to agricultural SMEs. VPBank said the facility’s range of maturities would support capital management and its 2026-2030 strategy.
The transaction follows a US$1.44 billion Sustainability-Linked Loan signed by VPBank and 15 international financial institutions in June 2026. In 2025, the bank raised US$2.36 billion, including a US$1.56 billion international syndicated loan and a US$300 million international sustainable bond issuance.
