VPBank seeks US$1.2bil in ESG-linked deal


HANOI: Vietnam Prosperity JSC Bank is seeking a sustainability‑linked loan of about US$1.2bil, according to people 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 people said, who asked not to be identified discussing private matters. 

Sumitomo Mitsui Banking Corp is the sole coordinator of the deal, they said.

SMBC’s parent company, Sumitomo Mitsui Financial Group, owns about 15% 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 didn’t reply to requests for comment.

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

COFCO International Ltd, the trading arm of China’s largest food processor COFCO Corp, recently secured a US$435mil revolving credit facility from Standard Chartered Plc in a deal linked to social and climate targets for agricultural supply chains.

State Bank of India is also marketing a US$500mil syndicated social loan, tied to women’s economic empowerment and gender equality.

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

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