(NLDO)- The Asian Development Bank (ADB) and Vinschool signed the first sustainability-linked loan in the education sector in Vietnam.
On March 18, the Asian Development Bank (ADB) arranged and signed a sustainability-linked loan (SLL) worth 150 million USD with Vinschool Joint Stock Company. The loan will be used to develop the Vinschool system, providing educational facilities for 20,400 students in urban areas in Hanoi, Ho Chi Minh City and Hung Yen.
Illustration photo. Source: vinschool
“This project marks ADB’s first private sector investment in education in Viet Nam and highlights our commitment to promoting sustainable development in the country,” said Mr. Shantanu Chakraborty, ADB Country Director for Viet Nam. “By supporting Viet Nam’s first sustainability-linked loan in the education sector, we aim to enhance education infrastructure while contributing to the development of new urban centers in Viet Nam.”
With ADB acting as arranger and structuring agent, the loan comprises $40 million from ADB funds, $35 million from ADB-managed Asian Private Infrastructure Facility 2 (LEAP 2), and $75 million from cofinancing.
The co-financing includes $40 million from ILX, an Amsterdam-based emerging markets asset manager, and $35 million from the Asia and Africa Emerging Infrastructure Fund, an emerging markets infrastructure lending fund owned by the private Infrastructure Development Group and asset manager for NinetyOne. The sustainability-linked loan has been certified by DNV Business Assurance Company.
Vietnam has made significant progress in universal education, with a literacy rate and primary school enrollment of 98%. However, as Vietnam moves from a developing country to a middle-income country, there is an urgent need to improve the quality of education and increase access to education in rapidly urbanizing cities. The private sector, including organizations like Vinschool, plays a crucial role in closing this gap.
“We are delighted to partner with ADB and other donors on this groundbreaking project,” said Vinschool CEO Phan Ha Thuy. “This project will enable us to provide high-quality education to more students, while setting a benchmark for sustainable education in Vietnam. The project affirms Vinschool’s commitment to environmental, social and governance standards, reinforcing the school’s efforts in sustainable development.”
LEAP 2 is a fund administered by ADB with a $1.5 billion commitment from the Japan International Cooperation Agency (JICA). The fund focuses on private sector sustainable infrastructure projects that reduce carbon emissions, improve energy efficiency, and provide affordable health care, education, and communication services to ADB’s developing member countries.
Founded in 2013, Vinschool is the largest private school system in Vietnam, providing high-quality education from kindergarten to high school. The school has more than 48,000 students at 54 campuses in Hanoi, Ho Chi Minh City and four other provinces, offering both the Vietnamese curriculum and the Cambridge bilingual program.
Vinschool is a subsidiary of Vingroup Corporation, one of the largest multi-industry private economic groups in Vietnam.
ADB is the leading multilateral development bank promoting sustainable, inclusive, and resilient growth in Asia and the Pacific. Working with its members and partners to address complex challenges, ADB harnesses innovative financial instruments and strategic partnerships to transform lives, build quality infrastructure, and protect our planet.
Established in 1966, ADB is owned by 69 members, with 49 from the region.
Source: https://nld.com.vn/adb-thu-xep-khoan-vay-150-trieu-usd-phat-trien-he-thong-truong-vinschool-196250318113938281.htm
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