In one embodiment, one or more virtual private network (VPN) prefixes may be grouped at a network node into sets having shared network border node next-hop options, where each border node has a defined index value associated therewith. Also, a list of VPN labels associated with each VPN prefix may be maintained by the network node, where each VPN label is associated with a border node of a particular set by a corresponding index value. Further, the network node may determine a particular border node for traffic to be forwarded, along with the defined index value. The network node may then apply the index value to select an associated VPN label, and may affix the selected VPN label to the traffic for forwarding.