Vietnam Prosperity JSC Bank is seeking a sustainability-linked loan of about $1.2 billion, according to people familiar with the matter, in what would be one of the country's largest financings tied to ESG metrics. The Vietnam Prosperity Bank is pursuing this financing as part of its broader strategy to align with global sustainability standards and attract international investors.

The deal represents a significant milestone for Vietnam's banking sector, where ESG-linked financing has been relatively rare. If successful, this $1.2 billion loan would set a new benchmark for sustainable finance in the country. The terms of the loan would likely include performance targets related to environmental and social criteria, with potential adjustments to interest rates based on the bank's progress toward these goals.

This financing comes as Vietnam's financial institutions increasingly face pressure from international investors and regulators to adopt more sustainable practices. The move by Vietnam Prosperity Bank signals growing maturity in the country's capital markets and could encourage other Vietnamese companies to pursue similar ESG-linked financings. The deal's success could reshape how banks in Southeast Asia approach sustainability-linked products.