Việt Nam Prosperity Joint Stock Commercial Bank (VPBank) has become the first bank in Việt Nam to successfully issue US$300 million in sustainable bonds on the international market, marking a significant milestone for the banking sector on the global sustainable finance map.
VPBank’s sustainable bonds, VPBIP2530, carry a five-year maturity and were issued through a private placement, totalling 1,500 bonds with a face value of $200,000 each. The full $300 million raised will be directed toward green, social and sustainability-focused projects across Việt Nam.
These include renewable energy, sustainable transportation, low-emission agriculture, and inclusive finance initiatives aimed at supporting small and medium-sized enterprises (SMEs), women-led businesses and community-focused projects that enhance quality of life. By expanding our lending portfolio with the newly raised funds, VPBank expects to help create 38,000 jobs over the next five years, contributing to income growth and driving broader economic development nationwide.
Of the $300 million in sustainable bonds successfully issued, the International Finance Corporation (IFC), a member of the World Bank Group, acquired $200 million worth, with Proparco subscribing to the remaining $100 million.
Acting as the anchor investor, IFC provided a strong seal of credibility for VPBank’s sustainable bonds on the global stage. This reflects the trust of the reputable international financial institution in VPBank’s long-term sustainable development strategy and underscores the growing potential of Việt Nam’s green finance sector.
According to the World Bank Group, Việt Nam will need approximately $368 billion in investment for climate adaptation and carbon emission reduction projects by 2040. However, as of September 2024, new green credit accounted for only 4.5 per cent of the banking sector’s total loan balance, highlighting the urgent need to mobilise capital from both public and private sectors. Therefore, VPBank is taking a pioneering role in the banking sector with our outstanding green loans reaching VNĐ31.7 trillion by the end of June 2025, up 44.5 per cent compared to the end of 2024.
VPBank ranks among the top joint stock commercial banks in Việt Nam with total consolidated assets surpassing VNĐ1.1 quadrillion as of June 30, 2025.
Nguyễn Đức Vinh, CEO of VPBank, said: “This issuance marks an important milestone in VPBank’s sustainable development journey. It also demonstrates that Việt Nam is fully capable of tapping into global green capital flows.
"The $300 million raised will be deployed into key green and social projects, contributing to the Government’s Net Zero commitment and helping build a sustainably prosperous Việt Nam.”
VPBank’s successful sustainable bond issuance came on the heels of our official membership in the Alliance for Green Commercial Banks, a global initiative by IFC. This marks VPBank as a trailblazer in Asia in adopting global green finance standards, affirming our long-term vision and aspiration to reach the global stage.
Thomas Jacobs, IFC Country Manager for Việt Nam, Cambodia, and Laos, said: “This is a groundbreaking deal for Việt Nam’s banking sector and a model for other domestic financial institutions.
"By acting as the anchor investor and providing technical assistance, IFC is helping establish market standards for sustainable finance in Việt Nam - mobilising private capital and channelling it to where it’s needed the most: SMEs, women entrepreneurs, and climate-focused projects.”
The successful entry of VPBank’s sustainable bonds into the international market sets a meaningful precedent for Việt Nam’s banking sector to access global green capital markets where ESG funds and development finance institutions actively seek opportunities in emerging markets. This deal highlights the bank’s ability to align our business interests with the community’s interests, opening a long-term path where economic prosperity is closely linked to environmental and social prosperity.
VPBank ranks among the top joint stock commercial banks in Việt Nam with total consolidated assets surpassing VNĐ1.1 quadrillion as of June 30, 2025. The bank relentlessly innovates, promotes digital transformation, and embeds ESG principles into every aspect of operations consistent with our 'Prospering Việt Nam' mission. VPBank’s long-term strategy focuses on balancing business growth with sustainability, helping build a society that is economically prosperous, environmentally green, and future-sustainable.
Source: VNS
