TPBank signed a USD 50 million agreement with ADB and DEG to support women-owned businesses

Tien Phong Commercial Joint Stock Bank (TPBank) has signed a tripartite cooperation agreement with the Asian Development Bank (ADB) and Deutsche Investitions- und Entwicklungsgesellschaft (DEG), a subsidiary of KfW, with a total value of up to 50 million USD to support women-owned businesses in Vietnam.

This agreement has confirmed ADB and DEG’s view on TPBank as a reputable and good bank in Vietnam with outstanding financial indicators, safe & transparent operational system, and outstanding growth in recent years.

This ADB cooperation agreement will be accompanied by a technical assistance package worth USD 750,000, funded for by the Fund for Women Entrepreneurs Finance (We-Fi), to help TPBank improve its capacity in promoting services to WSMEs. At the same time, TPBank can also use its digital platform to analyze the market and reach to WSMEs that are unbanked or underserved.

“We are very pleased to partner with TPB and We-Fi to support MSMEs, which are important channels to increase women’s participation in Viet Nam's economic development,” said ADB’s Director General for Private Sector Operations Suzanne Gaboury. “COVID-19 has severely affected many businesses, and initiatives such as this loan and grant will support particularly underserved female borrowers by helping TPB develop systems and procedures to improve their access to finance.”

For the first time coming to a cooperation agreement with TPBank, Ms. Monika Beck - member of DEG’s Management Board commented: “The transaction demonstrates DEG’s commitment to promote greater participation of women to drive business, raise productivity and improve the living standards of families in Vietnam. We are also ready to support TP Bank in increasing its capacity and expertise in Environmental and Social Risk Management.”

At the event, Mr. Nguyen Hung, Chief Executive Officer of TPBank said: “Providing women-owned businesses in Vietnam with access to finance is always an important strategic priority of TPBank. This funding is a great motivation for TPBank to launch innovative and more affordable products to customers, thereby enhancing the bank's position among Vietnamese women-owned corporate clients.”

This is not the first time TPBank has supported and shared with women-owned businesses whereby TPBank joined the COVID Grant Initiative by ADB to support specifically WSMEs, with the total package being 5 million USD. Previously, TPBank was also honored to receive the award "Leading partner in financing transactions for women in East Asia and the Pacific" awarded by the International Finance Corporation (IFC), thanks to being active in the field of trade finance, and supporting women-run businesses in Vietnam.

This cooperation agreement is not only an affirmation of the positive evaluations from international financial institutions for TPBank but also demonstrates TPBank's commitment to supporting Women-owned businesses, affirming the bank's commitment to poverty alleviation, improving financial inclusion, as well as contributing to economic growth.