DEG provides USD 100 million loan to VPBank for SMEs and women-owned businesses

DEG is providing a USD 100 million loan to Vietnam Prosperity Commercial Joint Stock Bank (VPBank). The financing forms part of a syndicated facility of up to USD 730 million arranged by IFC and Sumitomo Mitsui Banking Corporation (SMBC).

Loans for women-owned businesses and SMEs

The financing will enable VPBank to expand its lending to small and medium-sized enterprises (SMEs) in Vietnam. A particular focus is on women-led and women-owned businesses: at least 30% of the funds will be allocated to this segment, helping to strengthen women’s economic participation.

Strengthening SME growth and value chains in Vietnam

Vietnam continues to grow in importance as a manufacturing and trading hub in Southeast Asia. Against this backdrop, the financing will help improve SMEs’ access to long-term funding and strengthen their role within local value chains.

“With this large-scale loan, we are further expanding our cooperation with VPBank and supporting lending to small and medium-sized enterprises in Vietnam. In doing so, we are strengthening an important financial institution in Vietnam and improving access to finance, particularly for SMEs and women-led businesses,” says Juliane Loch, Head of Financial Institutions Asia & EMECA at DEG.

Through this transaction, DEG contributes to the further development of Vietnam’s financial sector. At the same time, it supports income generation and employment: VPBank creates direct local income effects and employs more than 15,000 people, more than half of whom are women.