now loading...
Wealth Asia Connect Middle East Treasury & Capital Markets Europe ESG Forum TechTalk
Asia Connect
JBIC and VPBank sign green credit line
Loan of up to US$150 million to finance renewable energy projects and electricity grids in Vietnam
Michael Marray 16 Oct 2024

Japan Bank for International Cooperation (JBIC) has signed an agreement with Vietnam Prosperity Joint-Stock Commercial Bank (VPBank), a private commercial bank in Vietnam, to provide a credit line of up to US$150 million. JBIC's portion is US$90 million.

The credit line, to be coursed through VPBank, will fund projects related to renewable energy and electricity grids in Vietnam under JBIC‘s GREEN (Global action for Reconciling Economic growth and ENvironmental preservation) operations.

At COP26 in Glasgow, Scotland, in 2021, Vietnam announced its national goal to achieve net zero emissions by 2050. According to the government's Eighth Power Development Plan, which was released in May 2023 as one of the initiatives to realize the goal, projects are planned to enhance and upgrade the power grids that connect optimal sites for power development with demand areas.

The loan aligns with the Asia Zero Emissions Community concept of pursuing carbon neutrality and economic growth, depending on the circumstances of each country. It also aligns with the Just Energy Transition Partnership, which the government of Vietnam signed with partner countries, including Japan and the United States, in December 2022.

In addition, JBIC extends the loan under the Vietnam Climate Finance Framework, which was announced under the Australia-Japan-US Trilateral Infrastructure Partnership in January 2023.