Vietnam lender TPBank borrows $100 mln from US development finance agency

Vietnamese private lender TPBank has signed a deal for a $100 million loan from the U.S. International Development Finance Corporation (DFC), a development finance institution under the U.S. government.

The commitment letter between the two sides was signed on Sunday, in the framework of the Vietnam visit by U.S. President Joe Biden. The event featured U.S. special presidential envoy for climate John Kerry and U.S. Ambassador to Vietnam Marc Knapper.

The seven-year loan will help to finance personal loans, microenterprises, small and medium-sized enterprises (SMEs), women-led businesses, women with low incomes, and others. TPBank will disburse the loans via digital channels.

TPBank earned a post-tax profit of VND2.71 trillion ($112.5 million) in the first half of 2023, down 10.7% year-on-year, according to the bank’s financial statement. Its net interest income fell 6.8% year-on-year to VND5.47 trillion ($227.2 million)

From end-2022 to June 2023, the lender’s total assets climbed 13.21% year-on-year to VND343.41 trillion ($14.3 billion). Its outstanding loans went up 10% to VND177.11 trillion ($7.4 billion), while its total deposits increased 2.1% to VND199.13 trillion ($8.3 billion).

Shares of TPBank, listed on the Ho Chi Minh Stock Exchange as TPB, closed down 1.27% at VND19,400 ($0.81) on Friday.

On the same day, VPBank, the largest bank in Vietnam in terms of charter capital, struck a deal for a $300 million loan from the DFC. The seven-year loan will help the Vietnamese bank continue sustainable financing for small and SMEs, women-led SMEs, and climate change response and low carbon-related projects.