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IFC Arranges a Loan of $100 Million for TPBank to Promote Digital Financial Services to MSMEs in Vietnam


IFC, a member of the World Bank Group, is providing a syndicated loan of $100 million to TienPhong Commercial Joint Stock Bank (TPBank). The IFC-led financing package will help TPBank to further extend long-term funding to micro, small and medium enterprises, and individual borrowers through digital delivery channels.  

Lack of financial access is one of key challenges for MSMEs, which employ about 77 percent of Vietnam’s labor force and contribute to around 41 percent of the country’s gross domestic product (GDP). About 70 percent of MSMEs have unmet financing needs, resulting in a $23.6 billion financing gap, equivalent to 12 percent of GDP.

Given the scenario, IFC’s long-term funding commitment would enable TPBank to double its MSME portfolio over the next five years, providing more than $1,800 million in about 46,000 loans by 2022. Notably, up to 65 percent of the transactions will be made digitally.  

Shifting to a cashless system is a priority for the government to increase efficiency, promote business and economic development, and reduce poverty in remote rural areas where it is difficult to reach through traditional financial providers.

The five-year financing package — comprising $60 million from IFC’s own account, $22.5 million from the multi-investor Managed Co-Lending Portfolio Program (MCPP) managed by IFC and $17.5 million from Industrial and Commercial Bank of China Ltd., Hong Kong Branch under IFC’s B Loan Program — is likely to improve the Vietnamese banking sector’s competitiveness by promoting a cashless economy via innovation and competition. It is further expected to create and facilitate between 35,000 and 56,000 jobs over the next five years.

“The much-needed syndicated funding from IFC and international lenders will help TPBank to implement a long-term digital strategy to capture the digital demographic growth opportunity and increase its reach to the unbanked and underserved segments,” said TPBank Chief Executive Officer Nguyen Hung.

“This syndicated facility is expected to have a catalytic impact for the Vietnamese banking sector, which is at a key juncture of mobilizing long-term private funding needed to support the country’s key development goals of developing SMEs and creating jobs.” said Kyle Kelhofer, IFC Country Manager for Vietnam, Cambodia and Lao PDR. “The large mobilization component sends a strong signal to the market, creating a demonstration effect of private sector financing for this key sector.”

IFC and TPBank’s partnership started in early 2016 with a trade finance guarantee of $10 million under IFC’s Global Trade Finance Program (GTFP). The trade finance line has been expanded over the years with the current limit of $60 million, allowing the bank to help more local companies increase trade, generate foreign exchange, and create employment opportunities.

IFC currently owns 4.387 percent of the bank’s equity capital after its quasi-equity investment in May 2016 was converted into equity. In addition to financing, IFC has been helping the bank to strengthen its corporate governance and connecting it with a network of innovative financial service providers in the region.

About IFC
IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work with more than 2,000 businesses worldwide, using our capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In FY17, we delivered a record $19.3 billion in long-term financing for developing countries, leveraging the power of the private sector to help end poverty and boost shared prosperity. For more information, visit

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About TPBank
Established on May 5, 2008, TPBank inherits technological expertise and financial strength from its shareholders, which include DOJI Gold and Gems Group, FPT Group, Vietnam National Reinsurance Corporation (Vinare), SBI Ven Holding Pte. Ltd, Singapore, PYN Elite Fund from Finland and IFC. Our mission is to offer customers the most beneficial financial solutions and banking products and services, based on our advanced technological infrastructure and specialized management skills. With our slogan, “A deeper understanding,” we aim to become Vietnam’s leading digital bank, continuously improving our products and services through developments in banking technology. For more information, please visit

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