- Region: Asia
- Untied Loans
The Japan Bank for International Cooperation (JBIC; Governor: Tadashi Maeda) signed on June 25, a loan agreement to set up a credit line totaling up to USD200 million (of which JBIC's portion is USD100 million) with Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank) as part of JBIC's Global Facility to Promote Quality Infrastructure Investment for Environmental Preservation and Sustainable Growth (QI-ESG*1 ). This credit line is co-financed with MUFG Bank, Ltd. (lead-arranger), Mizuho Bank, Ltd., The Joyo Bank, Ltd., and The Nishi-Nippon City Bank, Ltd., with JBIC providing a partial guarantee for the co-financed portion.
This credit line is intended to finance, through Vietcombank, renewable energy projects such as solar power generation projects in the Socialist Republic of Vietnam (Vietnam), as part of GREENoperations. It is the first GREEN creditline extended to Vietnam.
Vietcombank is a major state-owned commercial bank in Vietnam, in which the Vietnamese government has an equity share of approximately 75%. It offers a wide variety of financial services in Vietnam and is actively expanding support to renewable energy projects promoted by the government. JBIC signed a memorandum of understanding in August 2013 with Vietcombank for the development and the strengthening of frameworks to support business expansion into Vietnam by Japanese mid-tier enterprises as well as small and medium enterprises in cooperation with Japanese regional financial institutions*2. This loan, which focuses on the environmental sector, will further strengthen cooperation between JBIC and Vietcombank.
As Japan's policy-based financial institution, JBIC will continue to support global environmental preservation efforts in cooperation with local financial institutions by drawing on its various financial facilities and programs for structuring projects, and performing its risk-assuming function.