Hanoi-headquartered VPBank has raised a US$1 billion sustainable syndicated loan, the largest of its kind ever raised in Vietnam, to fund its development goals.

The facility was arranged, underwritten, and co-financed by a syndicate of global financial institutions, including Sumitomo Mitsui Banking Corporation ( SMBC ) and MUFG from Japan, Standard Chartered Bank, ANZ, Cathay United Bank, Germany’s Commerzbank, Taiwan-based CTBC Bank, Dubai-headquartered Mashreq Bank, and the State Bank of India.

The transaction followed a series of investor roadshows VPBank organized in the first quarter of this year in several financial centres, including Singapore, Taiwan, and Dubai. The efforts were designed to attract the attention of institutional investors to Vietnam’s sustainable finance agenda.

SMBC is VPBank’s strategic investor with a US$1.5 billion investment, while SMBC Consumer Finance holds a 49% stake ( around US$1.4 billion ) in FE Credit, VPBank’s consumer finance arm. Both SMBC and SMBC Consumer Finance are part of Sumitomo Mitsui Financial Group, or SMFG.

The latest loan helps VPBank further strengthen its strategic partnership with SMFG.

An upsize option for the loan will be available, depending on its future funding requirements.

According to the private commercial bank, its sustainable capital mobilization has reached around US$2.8 billion since 2020, and the sum has been used to support the growth of women-led businesses, green projects, and other socially responsible initiatives.