Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) and Japan Bank for International Cooperation (JBIC) have just signed a 200-million-USD loan agreement to support Renewable Energy Projects in Vietnam (green growth and environmental protection).
In order to cooperate in financing green energy projects (solar power, wind power) to contribute to protecting the environment in Vietnam, on June 25, 2019, Vietcombank and JBIC signed the above mentioned loan agreement. The facility is comprised of a senior unsecured loan provided by JBIC and 4 commercial lenders: MUFG Bank, Ltd. (lead-arranger), Mizuho Bank, Ltd., The Joyo Bank, Ltd., and The Nishi-Nippon City Bank, Ltd. The term of the loan is up to 14 years as in accordance with the demand for loans to invest in green energy projects in Vietnam.
In recent years, green credit as a world trend plays an important role in promoting sustainable socio-economic development and realizing all nations’ green growth strategy. With regards to Vietnam, following the development orientation of the Government, the green credit sector has constantly enjoyed Vietcombank’s special attention and resources and Vietcombank has in fact become a pioneer commercial bank in Vietnam to finance projects in this field.
Vietcombank is the leading bank in implementing the undertaking of the Government’s policies and the State Bank of Vietnam’s policies. Vietcombank has become one of the 30 strongest banks in the Asia-Pacific region in the recent rankings of The Asian Banker magazine. This facility of 200-million-USD loan agreement affirms the positive evaluation of the international development financing institutions toward Vietcombank; the confidence in the banking and finance operations in Vietcombank as well as the stronger cooperation between Vietcombank, JBIC and other commercial banks in order to contribute sustainable economic development and promote Vietnam’s regional integration and environmental protection.
JBIC is a policy bank under the Japanese Government. The main task of JBIC is to promote sustainable socio-economic development in Japan, as well as internationally. During its operation in Vietnam, JBIC has always strived to contribute to the socio-economic development of Vietnam, promoting economic exchanges between businesses of the two countries, thereby strengthening the strategic and traditional cooperation between Vietnam and Japan. JBIC has effectively implemented the promotion of foreign investment of Japanese enterprises into Vietnam, encouraging investment activities associated with the purpose of protecting the environment, promoting funding for important infrastructure projects in Vietnam.
Therefore, the facility is not significant for in-depth and effective cooperation between two top ranking financial institutions but also remains a symbol of Vietnam – Japan cooperation in contributing to further sustainable socio-economic development and raising the image of Vietnam as a friendly and safe investment, in the end contributing to further strengthening and developing the comprehensive bilateral relations between Vietnam and Japan to a new height.