VPBank, JBIC sign $150M credit line to finance green projects

The signing ceremony took place on Oct. 9 at VPBank's head office in Hanoi, attended by Japanese Ambassador to Vietnam Ito Naoki, JBIC Senior Managing Director Ogawa Kazunori, VPBank CEO Nguyen Duc Vinh, and other senior leaders from both institutions.

VPBank and JBIC representatives at the signing ceremony on Oct. 9, 2024. Photo courtesy of VPBank

As a policy-based financial institution owned by the Japanese government, JBIC plays a critical role in supporting global environmental preservation efforts. By utilizing its financial programs and collaborating with local institutions, JBIC helps structure projects and mitigate risks.

At the 26th UN Climate Change Conference (COP 26) in November 2021, the Vietnamese government committed to achieving net-zero emissions by 2050. To support this target, the government's Eighth Power Development Plan (PDP 8), announced in May 2023, outlines a transition from fossil fuel energy sources to renewable energy, aiming to upgrade and develop smart power systems and power grids.

In alignment with these objectives, the $150 million loan from JBIC to VPBank will be allocated to enterprises and projects focused on power transmission, renewable energy, and environmental protection across multiple provinces in Vietnam.

The loan is in line with Japan's Asia Zero Emissions Community (AZEC) initiative, which promotes carbon neutrality and economic growth in partner countries. It also supports the Just Energy Transition Partnership (JETP), agreed upon by Vietnam and its partners, including Japan and the U.S., in December 2022.

This cooperation between VPBank and JBIC marks a significant milestone, reflecting the confidence international financial institutions have in Vietnam's domestic banking sector, particularly VPBank.

Additionally, the partnership strengthens the economic and financial ties between Vietnam and Japan, contributing to broader collaboration in areas such as investment, industry, and finance. Japan remains one of the top three countries with the largest registered investment capital in Vietnam, amounting to over $76 billion as of June, according to the Foreign Investment Agency.

VPBank's headquarters in Hanoi. Photo courtesy of VPBank

Before this credit line from JBIC, VPBank had successfully secured numerous large-scale international loans, including a $300 million commitment from the U.S. International Development Finance Corporation (DFC) in 2023, nearly $1.7 billion in syndicated loans from institutions backed by strategic partner SMBC (Japan), and a $500 million syndicated loan from organizations such as the Asian Development Bank (ADB), Sumitomo Mitsui Banking Corporation (SMBC), Japan International Cooperation Agency (JICA), ANZ Bank, and Maybank Securities.

VPBank has played a vital role in promoting environmental, social, and climate-conscious initiatives in Vietnam. Through its financial development strategy, the bank has demonstrated a strong commitment to sustainability and responsible lending practices.