Agribank and AFD sign climate finance deal to boost green growth

Agribank and AFD sign climate finance deal to boost green growth

Agribank and the French Development Agency have signed a climate finance credit facility, marking a new step in international financial cooperation to promote green growth in Vietnam.

The agreement was signed on May 25. French Ambassador to Vietnam Olivier Brochet said, “This marks the first climate credit facility provided by the French Development Agency (AFD) to Agribank without a government guarantee. Beyond finance, the partnership marks a new development in the France and Vietnam cooperation in the sustainable finance and green transition field. We hope this will open up more ambitious collaboration between the two countries in the fields of green finance, climate, and energy transition.”

To Huy Vu, chairman of the Members' Council at Agribank, said, “Green growth and sustainable development have become the overarching direction for Vietnam in its next phase of development. Against the backdrop, green credit and green finance have been identified as the important tools to realise the country’s climate commitments.”

He added, “As a state-owned commercial bank playing a leading role in agriculture and rural development, Agribank is fully aware of its role as a bridge connecting international capital from development partners like AFD to farmers, businesses and green production models. Agribank is committed to managing and utilising the funding effectively, transparently, and in line with its intended purposes. Priority is given to renewable energy, smart and clean agriculture, low-emission production models, and climate adaptation initiatives.”

Julien Seillan, AFD country director in Vietnam, said, “Through this credit facility, AFD reaffirms its commitment to accompanying Vietnam’s major financial institutions during the transition towards a more sustainable, resilient financial system in line with Vietnam's climate goals.”

The partnership between Agribank and AFD is significant to both the economy and the bank's development strategy.

For the economy, climate credit facility contributes to diversifying the financial resources for ventures aimed at reducing greenhouse gas emissions and enhancing resilience to climate change, particularly in key sectors such as agriculture and rural development.

For Agribank, it is the first time the bank successfully gains access to direct medium- and long-term loans from foreign sources without government guarantee. This serves as a testament to Agribank’s financial capabilities and reputation in the international market. It paves the way for the bank to be more proactive in its capital structure, gradually asserting its leading role in Vietnam’s green finance landscape.

Through the tie-up with AFD, Agribank continues to advance its sustainable development strategy while expanding access to international resources for green growth. The bank also reaffirms its commitment to accompanying the government, businesses, and communities in the journey towards green transition, climate adaptation, and the development of a modern agricultural sector in Vietnam.

VIR