VPBank seeks US$1.2 billion in one of Vietnam’s largest ESG deals

[HONG KONG] Vietnam Prosperity JSC Bank is seeking a sustainability-linked loan of about US$1.2 billion, according to sources familiar with the matter, in what would be one of the country’s largest financings tied to environmental, social, and governance (ESG) metrics.

The Hanoi-based firm, also known as VPBank, has mandated more than a dozen banks to underwrite the three-year facility, the sources said, who asked not to be identified discussing private matters.

Sumitomo Mitsui Banking Corporation (SMBC) is the sole coordinator of the deal, they said. SMBC’s parent company, Sumitomo Mitsui Financial Group, owns about 15 per cent of VPBank’s shares.

The deal underscores the staying-power of corporate funding tied to ESG goals in emerging markets, even as such instruments have moderated after a period of expansion.

SMBC and VPBank did not reply to requests for comment.

Last May, VPBank secured a US$1 billion loan from global financial institutions to support the growth of women-led businesses, green projects and other socially responsible initiatives.

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Cofco International, the trading arm of China’s largest food processor Cofco, recently secured a US$435 million revolving credit facility from Standard Chartered in a deal linked to social and climate targets for agricultural supply chains. State Bank of India is also marketing a US$500 million syndicated social loan, tied to women’s economic empowerment and gender equality.

Sustainability-linked loans totalled about US$139 billion last year and are estimated to grow to about US$160 billion in 2026, according to a February report by ING analysts. BLOOMBERG