Vietnam Prosperity Joint Stock Commercial Bank
Status: Approved investmentWhy disclosure?
FMO is committed to making publicly available relevant investment information that informs stakeholders and enables them to engage directly with FMO on its investments which, in turn, enhances our investment decisions, the design and implementation of projects and policies, and strengthens development outcomes. Learn more
In case of questions
In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
VPBank is one of the largest privately owned commercial banks in Vietnam, providing all customer segments a comprehensive suite of products.
What is our funding objective?
FMO is providing a USD 35 mln loan as a parallel lender in an IFC-led syndication. With this loan, FMO will support the growth of VPBank’s green portfolio and Small & Medium Enterprise (SME) portfolio including women-owned SMEs.
Why do we fund this investment?
Providing financing to SMEs in Vietnam will contribute to FMO’s strategic goal of supporting economic growth and job creation. FMO aims to create additional impact in gender equalities via financing women-owned SMEs. Further, FMO’s support for green financing is contributing to reducing CO2 emissions, which is aligned with VPBank’s strategy of adopting sustainable banking practices.
What is the Environmental and Social categorization rationale?
VPBank is classified as E&S Category A bank due to high E&S risk portfolio, both in terms of sector exposure and portfolio size. High environmental and social risk activities concentrate in real estate development, construction, and industrial manufacturing. Contextual risks in these sectors include habitat fragmentation, resource pollution, climate change and occupational health and safety issues to name a few. VPBank has implemented an environmental and social management system aligned with the IFC PS, host country laws and the EDFI exclusion list. It also has a dedicated E&S team and has implemented both an internal and external grievance mechanism. The financing includes an action plan to further enhance VPBank’s environmental and social risk capacity.
- Website customer/investment
- https://www.vpbank.com.vn/en/ca-nhan
- Region
- Asia
- Country
- Viet Nam
- Sector
- Financial Institutions
- Publication date
- 1/26/2024
- Effective date
- 12/15/2023
- Total FMO financing
- USD 35.00 MLN
- Funding
- FMO NV
-
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - A
- Loan participation
- https://disclosures.ifc.org/project-detail/SII/46453/vpb-srloan2022