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ICBC contributes to $212.5 million syndicated green credit loan with VPBank for on-lending purposes (Linked to Record ID#92634)
| Funder | Industrial and Commercial Bank of China (ICBC) |
|---|---|
| Recipient Organization | Vietnam Prosperity Commercial Joint Stock Bank (VPBank) |
| Country | Viet Nam |
| Start Date | Jan 16, 2020 |
| End Date | Dec 19, 2027 |
| Duration | 2,894 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 90434 |
Grant Description
BOCOM and ICBC contrubution to $212.5 million syndicated green credit loan with VPBank for on-lending purposes On January 16, 2020, Vietnam Prosperity Commercial Joint Stock Bank (VPBank) signed a syndicated "Green Credit Loan Contract" worth $212.5 million.
The participating organizations were IFC, Bank of Communications of China (BOCOM), Industrial and Commercial Bank of China, KEB Hana Bank of Korea, Bank Kiatnakin Bank Thailand, the Investment Fund of the German Reconstruction Bank, and the International Investment Bank (IIB).
This syndicated loan is dispersed as follows: $50 million from IFC; $37.5 million from the Co-financed Portfolio Program (MCPP) managed by IFC, and $125 million in syndicated loans from Bank of Communications of China, Industrial and Commercial Bank of China, KEB Hana Bank of Korea, Bank Kiatnakin Bank Thailand, the Investment Fund of the German Reconstruction Bank and the IIB International Investment Bank.
Project#ID 90434 captures ICBC's contribution ($20,833,333) and Project#ID 92634 captures BOCOM's contribution. This is the first green syndicated loan transaction in the Vietnam market.
The use of a green loan is part of broader sustainable investment and aims to reduce the impact on the environment of new lending activities. The loan will be used for various climate-friendly projects that have yet to be specified.
In addition to the financial assistance provided, VPBank also received technical advice from IFC experts in developing a policy framework on green credit and sustainable financial instruments, setting up monitoring, management, and report on the status of capital use for green projects and will be certified by a reputable international organization.
Furthermore, to meet the loan requirements, VPBank has invested in training a team of internationally certified green credit experts to assess the green standard of each loan for each climate-focused project that will result from this loan agreement.
Staff Comments
1. ICBC and BOCOM's contributions to the $125 million loan are unknown. For the time being, AidData has assumed that each of the 6 members of the syndicate contributed equally ($20,833,333).
Sources & References
- VPBank signed a 'Green Credit Loan Agreement' with IFC and international financial institutions
- VPBank receives $212.5 million loan from IFC for green projects
- IFC Supports Vietnam Prosperity Bank to Boost Climate Financing
- Reduce Greenhouse Gas Emissions Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.
All Grantees
Vietnam Prosperity Commercial Joint Stock Bank (VPBank)
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