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VP Bank issues a pioneering green bond and paves the way for green and inclusive finance in Vietnam
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VP Bank has just issued a $300 million green social and sustainable bond, the first ever issued by a private bank in Vietnam on the international market. Proparco is supporting this pioneering initiative with $100 million.
Proparco is renewing its partnership with VP Bank, the sixth-largest bank in Vietnam by total assets, which was initiated in 2020, and will continue to support sustainable finance in Vietnam.
By subscribing to VP Bank’s inaugural $100 million bond issuance with a five-year term, Proparco is contributing to the development of climate finance projects in line with France's commitments under the JETP (Just Energy Transition Partnership). This transaction is eligible for the 2X Challenge qualification and will support small and medium-sized enterprises owned or led by women, creating up to 38,000 jobs over the next five years.
Together with the IFC, a member of the World Bank Group, Proparco is helping to create this innovative financial instrument that represents a significant milestone for the Vietnamese banking sector.
Through this transaction, Proparco:
- is participating in a historic transaction in the green finance sector in Vietnam, demonstrating the ability of players such as VP Bank to access the international green capital market, thereby sending a strong message to the market;
- is supporting the actions of private sector players committed to combating climate change: $40 million dedicated to the electric transport sector, the circular economy, and renewable energies;
- promotes sustainable agriculture (20% of funding);
- contributes to a more inclusive economy, highlighting the importance of female entrepreneurship in the Vietnamese economy ($40 million);
- confirms its role as a committed partner in strengthening the environmental and social management systems of financial institutions.
As a leading bank in Vietnam, VPBank plays a key role in the development of the Vietnamese economy. By providing financing for its climate, gender, and agriculture portfolio, the proposed transaction is expected to make positive contributions to SDGs #5, #8, and #13.