Vietcombank, JBIC exchange papers for US$200 million contract
Vietcombank, JBIC exchange papers for US$200 million contract
The Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) and the Japan Bank for International Cooperation (JBIC) on July 1 exchanged papers related to the US$200 million credit contract they had signed a week ago to finance renewable energy projects.
The exchange ceremony was witnessed by Vietnamese Prime Minister Nguyen Xuan Phuc and his Japanese counterpart Shinzo Abe. It took place right before the meeting of the two government leaders.
Given the credit contract, JBIC will arrange loans from four leading commercial banks in Japan---MUFG Bank Ltd, Mizuho Bank Ltd, the Joyo Bank Ltd and the Nishi-Nippon City Bank Ltd---with 14-year terms for green energy projects in Vietnam.
Green credit has become a popular trend in the world as it plays an important role in boosting sustainable socioeconomic development.
In Vietnam, Vietcombank has set aside special support for projects in this field. The US$200 million contract provided by JBIC and leading banks in Japan underscores Vietcombank’s reputation among international financial institutions and its close ties with JBIC.
JBIC is a Japanese public financial institution and export credit agency that has been tasked with speeding up economic cooperation between Japan and other countries by financing overseas investment and bilateral trade.
Prior to October 2008, JBIC was in charge of negotiating official development assistance credit, thereby contributing to the adoption of the Japanese government’s foreign relations policies. Focusing on sustainable development, JBIC has shown great interest in social and environmental projects.
In Vietnam, JBIC is the main creditor for the Nghi Son oil refining project and some thermal power plants.
