VPBank’s sustainable bond, coded VPBIP2530, is a 5-year private placement offering 1,500 bonds with a face value of USD 200,000 each. The total raised capital of USD 300 million will be allocated to green, social, and sustainable projects in Vietnam, including renewable energy, sustainable transportation, low-emission agriculture, and inclusive financial programs targeting SMEs, women-led businesses, and community development initiatives. This expansion of VPBank’s lending portfolio is projected to create 38,000 jobs over the next five years, boosting income and economic opportunities nationwide.
Of the USD 300 million bond issuance, the International Finance Corporation (IFC), a World Bank Group member, invested USD 200 million, while the remaining USD 100 million was funded by Proparco, the French Development Finance Institution. As the anchor investor, IFC’s participation validates VPBank’s sustainable bond on the global stage, demonstrating the confidence of a leading international financial institution in VPBank’s sustainable development strategy and highlighting the potential of Vietnam’s green finance market.
According to the World Bank Group, Vietnam requires approximately USD 368 billion in investments for climate adaptation and carbon emission reduction projects by 2040. As of September 2024, green credit accounts for only 4.5% of the total credit balance in the banking sector, underscoring the urgent need for both public and private capital mobilization. VPBank is leading the charge in this sector, with its green credit balance reaching VND 31.7 trillion by the end of June 2025, a 44.5% increase from the end of 2024.
Mr. Nguyen Duc Vinh, CEO of VPBank, stated, “This issuance marks a significant milestone in VPBank’s sustainable development journey and demonstrates Vietnam’s ability to attract global green capital. The USD 300 million will be deployed to key green and social projects, supporting the government’s Net Zero commitment and fostering a sustainable and prosperous Vietnam.”
The World Bank Group estimates that VPBank’s newly raised capital will generate 38,000 jobs over the next five years.
The success of this sustainable bond issuance follows VPBank’s recent membership in the Alliance for Green Commercial Banks, a global IFC initiative. VPBank is the first bank in Asia to align with international green finance standards, reinforcing its long-term strategic vision and global aspirations.
“This transaction is a pioneering step for Vietnam’s banking sector and sets a benchmark for other domestic financial institutions. As the lead investor in VPBank’s inaugural sustainable bond and provider of technical support, IFC is helping establish market standards for sustainable finance in Vietnam, mobilizing private capital, and directing funds to critical areas such as SMEs, women entrepreneurs, and climate projects,” said Mr. Thomas Jacobs, IFC Country Manager for Vietnam, Cambodia, and Laos.
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