IFC helps VP Bank boost climate financing
The International Finance Corporation is providing a financing package of $212.5 million to Vietnam Prosperity Joint Stock Commercial Bank (VP Bank).
The funding will help VPBank expand its lending to small and medium-sized enterprises and boost financing for climate-friendly projects. The five-year tenor loan comprises $50 million from IFC’s own account, $37.5 million from the multi-investor Managed Co-Lending Portfolio Program managed by IFC, and $125 million in syndicated loans from the Chinese Bank of Communications Company Limited; Industrial and Commercial Bank of China Limited; Korean KEB Hana Bank; Thai Kiatnakin Bank Public Company Limited; German DEG — Deutsche Investitions- und Entwicklungesellschaft mbH; and multilateral International Investment Bank.
It represents IFC's first green loan to a bank in Vietnam, where most of the near-term multimillion-dollar climate investment potential is in renewables and infrastructure.
