VPBank receives $150 million credit limit from JBIC to finance clean energy project

Vietnam Prosperity Bank (VPBank) and the Japan Bank for International Cooperation (JBIC) have recently officially signed a credit contract worth up to 150 million USD to finance renewable energy and power transmission projects in Vietnam, contributing to realizing the national goal of reducing net emissions to zero by 2050.

Representatives of VPBank and JBIC signed a green credit contract on the morning of October 9, 2024 in Hanoi. The credit contract signing ceremony took place at VPBank 's headquarters in Hanoi on October 9, 2024, with the participation of Japanese Ambassador to Vietnam - Mr. Ito Naoki, Senior Executive Director of JBIC - Mr. Ogawa Kazunori, and General Director of VPBank - Mr. Nguyen Duc Vinh, along with many leaders of the two organizations. JBIC is a financial institution owned by the Japanese Government with the mission of protecting the environment and combating climate change through cooperation with financial institutions in many countries and territories, using various programs and financial resources for investment projects towards sustainable development. At the 2021 United Nations Climate Change Conference (COP 26), the Vietnamese Government announced its national target of achieving net zero emissions by 2050. To realise this goal, the Government’s eighth Power Development Plan (PDP 8), to be announced in 2023, will be one of the key links guiding power generation to shift from fossil fuels to renewable energy sources. Accordingly, Vietnam will accelerate the development of smart power systems, integrate renewable energy sources, upgrade and build modern power transmission and distribution grids, etc. In line with the orientation of both governments, the medium and long-term loan of 150 million USD provided by JBIC to VPBank is expected to be disbursed to corporate customers and projects operating in the fields of power grid development and renewable energy business, having a positive impact on environmental protection in many localities across the country. The above unsecured loan is within the framework of the AZEC concept - Asia Zero Emissions Community (Asia Zero Emissions Community) initiated by the Japanese Government in an effort to neutralize carbon and achieve economic growth appropriate to each country's circumstances. The loan is also compatible with the JETP program - Just Energy Transition Partnership , agreed upon by Vietnam and partner countries including Japan and the United States in 2022. The cooperation between VPBank and JBIC is an important milestone that continues to affirm the trust of international financial institutions in the operations of domestic banks in general and VPBank in particular. In addition, the handshake of the two financial institutions also contributes to strengthening the strong relationship between Vietnam and Japan in many fields ranging from economics, finance, investment, industry, etc. Accumulated to the end of June 2024, Japan is one of the three countries with the largest total registered investment capital in Vietnam with more than 76 billion USD, according to data from the Foreign Investment Agency.

VPBank actively participates in realizing the national goal of net zero emissions by 2050 through green loans

Prior to the credit line provided by JBIC, VPBank has successfully mobilized many large-scale international sustainable finance loans, including a commitment of USD 300 million in financial support from the US International Development Finance Corporation (DFC) in 2023, syndicated loans from major financial institutions backed by strategic partner SMBC (Japan) with a total value of nearly USD 1.7 billion, and previously in 2022, a syndicated loan worth USD 500 million from five reputable financial institutions: Asian Development Bank (ADB), Sumitomo Mitsui Banking Corporation (SMBC), Japan International Cooperation Agency (JICA), ANZ Bank and Maybank Securities Pte. Ltd. Over the years, VPBank has always been one of the market leaders in environmental, social and climate contributions in Vietnam, through the development and action of a consistent sustainable financial development strategy and a clear awareness of responsible lending principles. Source: https://markettimes.vn/vpbank-nhan-han-muc-tin-dung-150-trieu-usd-tu-jbic-tai-tro-du-an-nang-luong-sach-66084.html