VPBank receives $212.5 million loan from IFC for green projects
VPBank receives $212.5 million loan from IFC for green projects
Vietnam Prosperity Joint Stock Commercial Bank (VPBank) has received a $212.5 million package from IFC, a member of the World Bank Group, to boost climate-friendly projects.VPBank received a $212.5 million loan from IFC to finance climate-friendly projects
This is the first green loan transaction in Vietnam. This loan package marks an important milestone for VPBank, which opens up the opportunity for the bank to pioneer green finance in Vietnam. This milestone also demonstrates VPBank's firm commitment to its sustainable development strategy in line with the directions of the State Bank of Vietnam and the government.
Vietnam’s is one of the most carbon-intensive countries in the world, ranking only after China and Mongolia in the East Asia and Pacific region. Reducing greenhouse-gas emissions has been a national target to mitigate the impacts of climate change, it presents a $753 billion climate investment opportunity for Vietnam between 2016 and 2030. Currently, the share of climate financing in Vietnam is just about 5 per cent or $10.3 billion, indicating a significant climate finance gap.
Thus, it is expected that about one-third of the financing package will be earmarked for climate-friendly projects, creating new options for businesses to obtain green financing at a favourable interest rate.
In addition, VPBank can also make positive contributions to the country by providing financial solutions for corporate customers investing in eco-friendly projects like developing renewable energy, ensuring national energy security, making energy usage more efficient, building green buildings, green traffic, treating and managing waste, as well as minimising environmental pollution.
Under the agreement, VPBank will also receive technical support from IFC experts in building a green credit policy framework and sustainable financial instruments, as well as monitoring, managing, and reporting on the status of capital use for green projects, which will be certified by a reputable international organisation.
In order to meet the stringent requirements of the loan, VPBank has invested in training a group of green credit experts with international certificates to evaluate the green standards in each project.
