VPB SrLoan2022 (IFC-46453)

Regions
  • East Asia and Pacific
Geographic location where the impacts of the investment may be experienced.
Countries
  • Vietnam
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Jun 29, 2022
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
VIETNAM PROSPERITY JOINT STOCK COMMERCIAL BANK
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
  • Industry and Trade
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 150.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 150.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 225.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Jul 29, 2024

Disclosed by Bank Apr 24, 2022

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the bank's website, "the proposed project (the “Project”) consists of a 5-year senior loan package of up to US$200 million comprising of: (i) an A Loan of up to US$100 million from IFC’s own account, and (ii) mobilization of up to up to US$100 million, to Vietnam Prosperity Joint Stock Commercial Bank (VPBank, or the “Bank”) to support the growth of the Bank’s SME portfolio, with relevant focus on women-led/owned SMEs (WSME) financing and eligible climate-related projects with focus on projects financed by SMEs."                                

Early Warning System Project Analysis
For a project with severe or irreversible impacts to local community and natural resources, the Early Warning System Team may conduct a thorough analysis regarding its potential impacts to human and environmental rights.

The IFC categorized the project risk as FI-2.

People Affected By This Project
People Affected By This Project refers to the communities of people likely to be affected positively or negatively by a project.

The development impact of the proposed project is expected to be delivered through: (i) Increased access to finance for SMEs and WSMEs, (ii) Increased access to climate finance with a focus on SMEs access to green finance, thereby promoting green finance products by SMEs, (iii) expected reduction in GHG emissions, and (iv) promotion of international green lending principles in Vietnam.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

According to the IFC, the total project cost is of up to US$225 million comprising of: (i) an up to US$150 million A Loan for IFC’s own account, and (ii) up to US$75 million mobilization from various sources through B1 loan(s). IFC’s senior loan to VPBank described in this SII is targeted to support the Bank in growing its portfolio to SMEs and WSMEs, as well as and eligible climate-related projects with focus on projects financed by SMEs.      

Financial Intermediary
A financial intermediary is a bank or financial institution that receives funds from a development bank. A financial intermediary then lends these funds to their clients (private actors) in the form of loans, bonds, guarantees and equity shares. Financial intermediaries include insurance, pension and equity funds. The direct financial relationship is between the development bank and the financial intermediary.
Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

According to the IFC, VPBank is a Hanoi-headquartered commercial bank that provides a full range of banking services across all consumer groups including retail, SME, corporate, and institutional clients through a branch network of 235 branches and transaction points.

The Bank is listed on the Ho Chi Minh Stock Exchange with a market capitalization of US$6.9 billion as of January 28, 2022. The main common shareholders, as of December 31, 2021, are the Chairman Ngo Chi Dung and related persons (20.0%), Vice Chairman Lo Bang Giang and his related persons (7.4%), and Vice Chairman Bui Hai Quan and his related persons (6.6%). According to VPBank’s Annual Report 2021, VPBank investor base consists of individual investors with 73.6% holding and institutional investors with 26.4% holding.         


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Financial Intermediary - Vietnam Prosperity Joint Stock Commercial Bank:

Nguyen Thi Thanh Nga - Head of Financial Institution Department
Phone: (+84) 904 810 097
Email: ngantt71@vpbank.com.vn
Address: 89 Lang Ha, Ha Noi, Vietnam
Website: https://www.vpbank.com.vn/

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org

How it works

How it works