VPBank provided with loan to undertake green projects

Thursday, Jan 16, 2020 10:09

Representatives of IFC, international co-financiers and VPBank at the signing ceremony of a green credit loan agreement worth US$212 million in Ha Noi. — Photo baocongthuong.com.vn

The Vietnam Prosperity Joint Stock Commercial Bank (VPBank) has signed a green credit loan agreement worth US$212 million with the International Finance Corporation and other international co-financiers in Ha Noi.

VPBank said this is the first green loan transaction in Viet Nam.

Green credit refers to lending dependent on environmental criteria for the planned use of funds. It is part of wider sustainable investing and aims to reduce the impact on the environment of new lending activities.

This loan package marks an important milestone for VPBank and opens the opportunity for it to pioneer in the green financial market in Viet Nam.

Under the agreement, VPBank will also receive technical support from IFC experts in building a green credit policy framework and sustainable financial instruments, as well as monitoring, managing and reporting on the status of capital use for green projects, which will be certified by a reputable international organisation.

In order to meet the stringent requirements of the loan, VPBank has invested in training a group of green credit experts with international certificates to evaluate the green standards in each project. — VNS

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