Viet Nam Prosperity Joint Stock Commercial Bank (VPBank) and Sumitomo Mitsui Banking Corporation (SMBC) signed a US$200 million loan fund. — Photo courtesy of the bank

Viet Nam Prosperity Joint Stock Commercial Bank (VPBank) on Wednesday signed a US$200 million loan fund with Sumitomo Mitsui Banking Corporation (SMBC).

In a short time, VPBank and SMBC have reached an agreement to sign a syndicated loan with the participation of four international banks, CTBC Bank, Hua Nan Commercial Bank, State Bank of India and First Commercial Bank, as co-lenders. This entire international financial support package would be used to supplement VPBank's capital in order to strengthen its internal resources, expand business, and continue to lend new loans to customers facing difficulties in cash flow disruption due to COVID-19 pandemic.

Within only a week, VPBank received two consecutive syndicated loans with the participation of SMBC with a total value of $300 million. The success of this loan is positive proof of VPBank's reputation in the international arena, as well as the trust of its partners (SMBC) in the bank.

Speaking at the signing ceremony, a representative of VPBank said that despite the unfavourable economic context of the COVID-19 which caused consequences for the domestic financial system, VPBank has still actively supported reducing, rescheduling and reducing interest rates, creating favourable conditions for customers to easily access the bank’s financial and non-financial supports.

VPBank's head office in Ha Noi. VPBank is one of the largest banks in Viet Nam. — Photo courtesy of the bank

By receiving this credit, VPBank will have another important resource to strengthen its capital base, sustainably grow and continue to provide support solutions for both individual customers and businesses for at least the next two years.

The VPBank's representative also emphasised that this event was a new development step, continuing to open up comprehensive co-operation opportunities between VPBank and SMBC in the upcoming time.

Jun Palanca, Head of Distribution Asia and Structured Credit Distribution, Investment Banking Department for SMBC said that following the success of the $100 million grant signed last week within the framework of the Sustainable Development programme co-operation between JICA and SMBC, SMBC is proud to continue to become the focal bank to arrange for this $200 million syndicated loan. After a careful selection process, only four banks are eligible to participate in the loan package with VPBank. Despite the difficulties caused by the COVID-19 pandemic, the loan's success affirms the lenders' confidence in VPBank's leadership and strong financial capacity. We would like to thank VPBank once again for entrusting SMBC with the opportunity to provide this loan package during a challenging time.

Established in 1993, VPBank has been one of the commercial banks with a long history in Viet Nam. After 28 years of operation, VPBank has grown its network to 233 branches and transaction offices nationwide with nearly 25,000 employees as of June 30, 2021. By the end of the second quarter of 2021, the total operating income of VPBank reached VND23 trillion, a before-tax profit of VND9 trillion, completing more than 80 per cent of the whole year’s plan and increasing 37.2 per cent over the same period last year. It now ranks 4th among banks in Viet Nam.

Sumitomo Mitsui Banking Corporation (SMBC) is the 13th largest bank in the world by total assets and has operations in 41 countries worldwide. — VNS