BIDV and DDC sign agreement to fund Nghi Sơn high-tech mechanical plant project

Wednesday, Nov 20, 2024 16:06

BIDV plans to provide green financing for the Nghi Sơn High-Tech Mechanical Factory project, currently being developed by DDC in Thanh Hóa Province. — Photo courtesy of DDC

Đại Dũng Construction Mechanical Trading Corporation (DDC) and the Bank for Investment and Development of Vietnam (BIDV) have signed a comprehensive cooperation agreement for the 2024–29 period and a green credit contract to fund the Nghi Sơn High-Tech Mechanical Plant project in Thanh Hóa Province.

BIDV will provide capital and modern banking services, including working capital and medium to long-term funding, for DDC’s projects in construction, real estate and manufacturing.

General Director of DDC Trịnh Tiến Dũng highlighted the significance of green trade financing in promoting sustainable development. “This funding is a critical resource for DDC to execute renewable energy and heavy-lift projects. BIDV’s financial backing will facilitate our efforts in advancing projects that meet carbon-neutral criteria, reducing emissions and environmental impacts,” he said.

DDC has integrated sustainability into its long-term growth strategy, focusing on meeting LEED Gold standards and CBAM (Carbon Border Adjustment Mechanism) requirements to penetrate European markets. The company prioritises carbon-neutral projects, from selecting eco-friendly materials to manufacturing, construction and operation, while actively contributing to social welfare through various community initiatives.

General Director of BIDV Lê Ngọc Lâm praised DDC’s success in exporting to demanding markets. “BIDV is committed to leveraging its best resources to provide capital and support for DDC’s upcoming projects,” Lâm said.

This partnership aligns with BIDV’s green banking strategy, following its introduction of a sustainable lending framework and green bond guidelines. BIDV is the first domestic bank to issue sustainable bonds, raising VNĐ3 trillion under the International Capital Market Association’s guidelines. Additionally, the bank has mobilised nearly VNĐ5 trillion in green deposits to fund eco-friendly projects, energy-saving initiatives and emission reduction programmes. — VNS

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