Tien Phong Commercial Joint Stock Bank (TPBank) signed the agreement with DEG, a member of Germany's KfW Group, on October 20, 2026.

The financing will provide TPBank with additional medium- and long-term US dollar funding, diversify its international funding sources and expand its green lending capacity.

The partnership will also support improvements to the bank's Environmental and Social Risk Management System (ESMS) in line with international standards.

Green projects and SMEs to receive priority funding

Under the agreement, TPBank will allocate the five-year financing facility to two strategic priorities.

Sixty percent of the funding, equivalent to $30 million, will be directed toward eligible green projects, emissions reduction initiatives and energy transition activities, supporting Vietnam's climate objectives.

The remaining 40%, or $20 million, will support small and medium-sized enterprises (SMEs), with particular emphasis on women-owned and women-led businesses.

Alongside the financing, DEG will provide technical assistance to help TPBank upgrade its environmental and social risk management framework.

The program is designed to strengthen the bank's ability to identify, assess and monitor environmental and social risks throughout the lending process.

It will cover the standardization of policies, risk classification tools, credit appraisal procedures and monitoring processes, as well as specialized staff training.

These improvements are expected to help TPBank align its lending operations more closely with the sustainability requirements of international financial institutions.

DEG renews partnership with TPBank

The agreement marks DEG's second investment in TPBank, following an earlier partnership focused on improving access to financing for women-owned businesses.

The latest transaction expands that cooperation into green finance, reflecting both institutions' commitment to sustainable growth, Vietnam's green transition and improved access to capital for businesses pursuing sustainability goals.

The renewed financing also reflects DEG's confidence in TPBank's financial position, governance practices and capacity to deploy international funding.

Speaking at the signing ceremony, Monika Beck, a member of DEG's Management Board, described Vietnam as a strategic market for the institution.

"Vietnam continues to be a strategic market for DEG. TPBank has affirmed its position as a trusted partner thanks to its strong commitment to good governance, digital transformation, and customer-focused growth," Beck said. "Today's USD 50 million facility represents the next step in our cooperation. The financing will support areas that are central to both our institutions' priorities."

She emphasized that 60% of the facility would support eligible green projects, contributing to Vietnam's sustainable development and climate objectives.

The remaining 40% would be directed toward SMEs, including women-owned and women-led businesses.

The partnership is expected to strengthen SME development, support women entrepreneurs and contribute to Vietnam's green growth objectives.

Nguyen Hung, Chief Executive Officer of TPBank, said the longstanding relationship with DEG would help the bank diversify its international funding structure while reinforcing confidence in its governance.

"DEG's many years of partnership not only help TPBank increase its medium- and long-term USD funding and diversify its international capital structure, but also serve as an endorsement of the bank's transparent governance," Hung said. "This is a strategic lever for TPBank to unlock green credit, expand access to capital for SMEs, especially women-owned businesses, and gradually integrate ESG standards deeply into practice, in support of the nation's Net Zero goal."

Building on international financing partnerships

TPBank has previously secured substantial funding from international development finance institutions.

The bank raised $220 million in long-term financing from the US International Development Finance Corporation (DFC) and the Japan International Cooperation Agency (JICA).

It has also established cooperation programs with the Asian Development Bank (ADB), the International Finance Corporation (IFC) and other international institutions.

The additional $50 million facility from DEG is expected to further strengthen TPBank's position as a financing partner connecting international development institutions with Vietnamese businesses.

By expanding access to long-term capital and incorporating stronger environmental, social and governance standards into its operations, TPBank aims to support businesses pursuing sustainable development and contribute to Vietnam's transition toward a greener economy.