Credit Line for Vietnam Prosperity Joint-Stock Commercial Bank under GREEN Operations
Supporting Development of Electricity Grids Necessary to Expand Renewable Energy Business in Vietnam

• Region: Asia
• Infrastructures
• Environment
• Untied Loans

1. The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) signed on October 9 a general agreement to provide a credit line with Vietnam Prosperity Joint-Stock Commercial Bank (VPBank), a private commercial bank in Vietnam, amounting to up to USD150 million, of which JBIC's portion is USD90 million.
     
2. This credit line is intended to finance, through VPBank, the funds necessary for projects related to renewable energy and electricity grids in Vietnam under GREEN operations^*1.
     
3. At the 26th session of the Conference of the Parties to the United Nations Climate Change Conference (COP 26) in November 2021, the government of Vietnam announced its national goal to achieve net zero emissions by 2050. Also, according to the government's Eighth Power Development Plan (PDP 8), 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. Through the credit line, JBIC supports efforts made by the government of Vietnam and VPBank to preserve the global environment.
     
4. The loan is in line with the Asia Zero Emission Community (AZEC) concept, which is led by the government of Japan, of pursuing carbon neutrality and economic growth, depending on the circumstances of each country. It also aligns with the Just Energy Transition Partnership (JETP), which was agreed on by the government of Vietnam and its partner countries, including Japan and the United States, in December 2022. In addition, JBIC extends this loan under the Vietnam Climate Finance Framework (VCFF), which was announced under the Australia–Japan–United States Trilateral Infrastructure Partnership (TIP) in January 2023^*2.
     
5. 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 by performing its risk-assuming function.
     

Note

1. *1 
   See announcement on July 2, 2018.
2. *2 
   See press release on January 12, 2023.