DFC commits to provide long-term loan worth 100 million USD to TPBank

TPBank, one of the leading commercial banks in Vietnam, announced the signing of a letter of commitment for a 7-year loan of 100 million USD from the US Development Finance Corporation (DFC) of the US Government. The signing ceremony took place in Hanoi during the visit to Vietnam of US President Joe Biden.

On the morning of September 10, at the headquarters of Tien Phong Commercial Joint Stock Bank (TPBank), with the presence of Mr. John Kerry, US Presidential Special Envoy for Climate Change; Mr. Marc E. Knapper, US Ambassador to Vietnam and other US government officials, DFC signed a commitment to provide a loan worth 100 million USD to TPBank with a term of 7 years.

The bank will target individual customers, micro-enterprises, small and medium-sized enterprises in Vietnam, including low-income female customers and women-owned and led businesses in Vietnam.

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TPBank will disburse loans with preferential policies for suitable and needy subjects, focusing on digital channels. Vietnamese people and businesses will easily access capital with preferential interest rates and use it to improve their finances, expand their businesses, thereby promoting economic development. This is in line with DFC's goal of economic growth and promoting private sector development in emerging markets.

TPBank's commitment to receive loans from the US Government organization with the aim of helping people and businesses access capital at a more reasonable and convenient cost is in line with the bank's consistent orientation on comprehensive financial development, following the direction of the State Bank and the national comprehensive financial strategy of the Vietnamese Government.

Thereby, the bank will contribute to expanding access to financial services and financial opportunities for customers, creating conditions to improve financial capacity and income; supporting micro-enterprises, small and medium-sized enterprises to improve resources for development.

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As a leading bank in technology, a pioneer in digitalization, currently 80% of TPBank's new customers open accounts through digital channels, TPBank application on smartphones always achieves a high rate of regular customers (increased 4 to 5 times in the past 5 years) thanks to the network of connections covering all financial and payment needs (Beyond banking) of customers from education, healthcare, entertainment, public services, payment of fees, e-wallets...

TPBank owns the leading digital ecosystem for 3 consecutive years according to Asian Banker.

With the effective support of technology, access to and use of many safe and secure financial services opens up opportunities for individuals and small and medium-sized enterprises to access capital simply and securely, while being proactive in using capital for reinvestment, capital contribution, and business.

On the path of digital transformation for more than a decade, TPBank always understands to create products and apply technology to create convenience and simplicity for people and customers.

Mr. Do Anh Tu, Vice Chairman of TPBank's Board of Directors, said: " Digital transformation for sustainable development is one of TPBank's consistent orientations over more than a decade of transformation and digitalization.

Banks use technology to bring capital to more customers, while providing the most convenience and ease for people and businesses when using financial services while always ensuring safety and security.

I believe that the credit received through DFC will bring great efficiency, increase resources for TPBank to continue spreading capital to customers and people, businesses in need, contributing to building a good and sustainable society .

DFC's commitment to provide a $100 million loan on the occasion of US President Joe Biden's visit to Vietnam demonstrates the strong relationship and bilateral trust between the US and Vietnam.

This commitment is an important step forward for TPBank, demonstrating its prestige in the financial market and its breakthrough, reaching out to the group of leading banks in Vietnam, affirming its pioneering position in the digital transformation journey and bringing financial services to all people and customers, contributing to the country's economic development.

In its most recent rating, international credit rating agency Moody's Investors Service (Moody's) upgraded TPBank's credit rating to Ba3 with a stable outlook, affirming the bank's financial strength, good risk control and long-term development prospects.

DFC is the U.S. government's development finance institution. DFC partners with the private sector to finance solutions to the most important challenges facing developing countries today.

The organization invests in a wide range of sectors including energy, healthcare, infrastructure, agriculture, small businesses and financial services. DFC's investments adhere to high standards and respect for the environment, human rights and workers' rights.

Bao Anh

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