IFC finances first green loan to bank in VN
16:18 | 15/01/2020

VGP – The Viet Nam Prosperity Joint Stock Commercial Bank (VPBank) has organized the signing ceremony for the Green Loan Principles worth US$212.5 million that will help it expand its lending to small and medium enterprises (SMEs) and boost financing especially for climate-friendly projects.

The five-year loan is sponsored by the International Finance Corporation (IFC) and other prestigious international sponsors. 

This is IFC’s first green loan to a bank in Viet Nam. The loan will qualify as per the Green Loan Principles – a widely accepted set of voluntary guidelines that specify the use of proceeds, monitoring, and reporting. VPBank will also establish a management system to track, manage and report on the use of proceeds of a loan for dedicated green projects through third party verification.

Viet Nam, in terms of greenhouse gas emissions, is one of the most carbon-intensive countries in the world, ranking only after China and Mongolia in the East Asia and Pacific region. While reducing greenhouse gas emissions has been a national target to mitigate climate change impact, it presents a US$753 billion climate investment opportunity for Viet Nam between 2016 and 2030, according to an IFC study. 

IFC has been actively facilitating the development of a climate finance market in Viet Nam by supporting regulators to develop sustainable finance policies and tools to promote responsible lending practices in the banking sector, implementing a green buildings program and financing renewable projects.

By Thuy Dung

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