VPBank signed the syndicated loan of US$100 million with JICA and SMBC. — Photo courtesy of the bank

HÀ NỘI — Việt Nam Prosperity Joint Stock Commercial Bank (VPBank) has signed a loan fund with the Japan International Co-operation Agency (JICA) and Sumitomo Mitsui Banking Corporation (SMBC) to promote better financial access among female-led small and medium-sized enterprises (SMEs).

Under the agreement, JICA and SMBC would provide a syndicated loan of US$100 million to VPBank through Japan's Private Sector Investment and Finance (PSIF).

Representatives of VPBank, JICA and SMBC at the signing ceremony. — Photo courtesy of the bank

Speaking at the signing ceemony, a representative from VPBank said: “VPBank is the first private bank in Việt Nam to receive a syndicated loan from a development organisation under the Japanese Government and the largest private financial institution in Japan, affirming the bank's position in the international loans market despite the challenging context of the COVID-19 pandemic. This co-financing also plays an important role in opening the door for VPBank to access the Japanese capital market with the most prudent and strict credit standards in the world. This result was achieved thanks to the effective pandemic control strategy implemented by the Vietnamese Government, which has created confidence for the country’s banking industry in the international capital market. VPBank has also made efforts to maintain its operations and sustainable business growth.”

Rajeev Kannan, managing executive officer and deputy head of SMBC Asia Pacific, said that this loan is SMBC's first loan in the Asian market, within the framework of the Sustainable Development programme co-operation between JICA and SMBC, to support women-led businesses that are VPBank’s customers. SMBC is delighted to partner with VPBank and JICA in implementing this loan, with the goal of enhancing financial resources for SMEs, helping to advance SMBC’s goal of sustainable financing.

VPBank is currently the leading bank providing comprehensive financial solutions for SMEs in general and for female-led SMEs in particular. The capital from this co-finance has a very special meaning to support SMEs and women-led firms that can overcome difficulties in the context of the COVID-19 to recover business in the future.

Established in 1974, JICA is an organisation under the Japanese Government to assist countries in economic development and enhance competitiveness.

SMBC is the 13th largest bank in the world by total assets and has operations in 41 countries worldwide. The syndicated loan granted to VPBank this time marks the first time that JICA's PSIF and a Japanese financial institution have co-financed a financial institution in Việt Nam since 2012 - the time when PSIF re-launched, emphasising the friendly relationship between the two countries and the interest of Japanese corporations in the Vietnamese market.