Vietnam Prosperity JSC Bank, commonly known as VPBank, is reportedly pursuing a sustainability-linked loan (SLL) of approximately $1.2 billion. According to sources familiar with the matter, the Hanoi-based lender has mandated more than a dozen banks to underwrite the three-year facility, which would rank as one of the largest ESG-related financings in Vietnam’s history.
Sumitomo Mitsui Banking Corporation (SMBC) is acting as the sole coordinator for the deal. SMBC’s parent group currently holds a 15% stake in VPBank, underscoring a strong strategic partnership between the two financial institutions.
The transaction highlights the continued appetite for corporate funding tied to environmental, social, and governance (ESG) targets within emerging markets. While the global expansion of such instruments has moderated recently, analysts suggest that the sector remains a primary vehicle for regional development.
This latest move follows a $1 billion loan secured by VPBank last May, which was dedicated to supporting green projects and women-led businesses. The trend is mirrored across the region; the State Bank of India is currently marketing a $500 million social loan, while the trading arm of China’s Cofco recently finalised a $435 million credit facility linked to sustainable agricultural supply chains.
Market data from ING suggests that the sustainability-linked loan market, which reached $139 billion last year, is projected to grow to roughly $160 billion by the end of 2026. Neither VPBank nor SMBC have officially commented on the ongoing negotiations.
