DCM VPB Sustainability Bond (IFC-49438)

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
Apr 8, 2025
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 (VPBank)
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
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)
$ 200.00 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 Oct 24, 2025

Disclosed by Bank Aug 18, 2025

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Contact the EWS Team

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 IFC investment is a subscription of up to US$200 million in a five-year sustainability bond to be privately issued by Vietnam Prosperity Joint-Stock Commercial Bank (VPBank). The proceeds of the Bond will be used to expand VPBank's sustainable finance portfolio by financing eligible climate and social projects in line with the Sustainable Finance Framework (SFF) to be established by the Bank, which will adhere to the International Capital Market Association's Sustainability Bond Guidelines and IFC's Climate Definitions. The Project is expected to catalyze the sustainable financing activities of commercial banks in Viet Nam and help create market standards for sustainable bonds issued by commercial banks.

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 proposed project consists of a sustainable bond to support VPBank in expanding its financing eligible climate and social sub-projects. The project will not support coal-related activities and/or higher E&S risk business activities involving as: (a) involuntary resettlement (including physical and economic displacement), (b) risk of adverse impacts on Indigenous Peoples, (c) significant risks to or impacts on the environment, community health and safety, biodiversity, cultural heritage, (d) risk of significant retrenchment; (e) significant occupational health and safety risks to employees. The project will support only medium/medium-low E&S risk sub-projects and has therefore been categorized as FI-2 in accordance with IFC’s Sustainability Policy.

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

The proposed investment is IFC's subscription of US$200 million in a five-year sustainability bond to be privately issued by VPBank. The proceeds of the Bond will be used to expand VPBank's sustainable finance portfolio by financing eligible climate and social projects in line with the SFF to be established by the Bank.

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.

Established in 1993, 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 287 branches and transaction points. As of March 31, 2025, the Bank had total assets of US$38.9 billion, gross customer loans of US$28.6 billion and customer deposits of US$21.6 billion. In April 2025, Moody's affirmed VPBank's Ba3 long-term deposits, senior unsecured and issuer ratings, and kept the outlook at “Stable.

In October 2023, Sumitomo Mitsui Banking Corporation (SMBC) acquired 15% of the Bank's equity stake and became the strategic shareholder of the Bank.


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.

Vietnam Prosperity Joint Stock Commercial Bank
Ms. Nguyen Thi Thanh Nga
Head of Financial Institutions Department
+84 24 7305 6600 ext: 100574
ngantt71@vpbank.com.vn
89 Lang Ha, Dong Da, Ha Noi, Viet Nam
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