Takeaways

• VPBank is seeking a US$1.2 billion sustainability-linked loan, potentially one of Vietnam’s largest ESG financings.
• The deal highlights continued interest in ESG financing in emerging markets, despite slower growth in the segment.
• SMBC is acting as the sole coordinator, strengthening ties between global lenders and Vietnam’s sustainability transition.

Vietnam Prosperity JSC Bank (VPBank) is seeking to raise around US$1.2 billion through a sustainability-linked loan, in what could become one of the largest environmental, social, and governance (ESG) financing deals in Vietnam.

According to sources familiar with the matter, the Hanoi-based lender has appointed more than a dozen banks to help underwrite the three-year facility, which will be tied to ESG performance targets. The loan is expected to support projects aligned with sustainability goals, reflecting the growing importance of ESG-linked funding across emerging markets.

Japan’s Sumitomo Mitsui Banking Corporation (SMBC) is serving as the sole coordinator for the financing. SMBC’s parent company, Sumitomo Mitsui Financial Group, currently owns around 15% of VPBank’s shares, highlighting a long-standing strategic relationship between the two institutions. Both VPBank and SMBC declined to comment on the proposed deal.

Read More: Global Banks Go Green! Billions for Sustainability

The proposed transaction underscores the continued relevance of sustainability-linked loans, even as growth in ESG debt markets has moderated following rapid expansion in recent years. Such loans typically offer financial incentives for borrowers to meet predefined sustainability targets, such as reducing emissions, improving social inclusion, or supporting responsible business practices.

VPBank has previously demonstrated its commitment to ESG-focused financing. In May last year, the bank secured a US$1 billion loan from global financial institutions aimed at supporting women-led businesses, green projects, and socially responsible initiatives. The new financing would further strengthen its position as a key player in sustainable finance in Southeast Asia.

Across the broader market, companies are increasingly turning to ESG-linked instruments to support responsible growth strategies. Cofco International, the trading arm of China’s largest food processor, recently secured a US$435 million revolving credit facility linked to climate and social targets in agricultural supply chains. Similarly, the State Bank of India is currently marketing a US$500 million syndicated social loan focused on promoting women’s economic empowerment and gender equality.

Market analysts note that sustainability-linked lending continues to gain traction globally. According to a February report by ING analysts, sustainability-linked loans reached approximately US$139 billion in 2025 and are projected to grow to around US$160 billion this year. The figures suggest that while growth has stabilized compared to earlier years, demand for ESG financing remains strong, particularly in emerging economies.

Also Read: How Sustainable Debt Is Evolving: 11 Key Trends for 2026

If completed, VPBank’s proposed loan would mark a significant milestone for Vietnam’s sustainable finance landscape, reinforcing the country’s efforts to attract global capital aligned with environmental and social objectives. The deal also signals that ESG considerations continue to influence corporate funding strategies, as businesses seek to balance financial performance with long-term sustainability commitments.

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Source: THE BUSINESS TIMES