HÀ NỘI — The Asian Development Bank (ADB) has led and signed a US$150 million syndicated sustainability-linked loan with Vinschool Joint Stock Company. The loan will be used to expand the Vinschool education system, providing educational facilities for 20,400 students in urban areas of Hà Nội, HCM City and Hưng Yên.  

“This project marks ADB's first private sector investment in Việt Nam's education sector and highlights our commitment to fostering sustainable development in the country,” said ADB Country Director for Việt Nam Shantanu Chakraborty.

"By supporting the country’s first sustainability-linked loan in the education sector, we aim to enhance educational infrastructure while contributing to new residential hub development in the country."

As the mandated lead arranger and bookrunner, ADB structured a financing package totaling $150 million, including loans from its own resources, the LEAP 2 fund, and parallel loans from ILX and the Emerging Africa & Asia Infrastructure Fund, with validation from DNV Business Assurance Vietnam Co Ltd.

Việt Nam has made significant progress in expanding education coverage, achieving an impressive 98 per cent literacy rate and over 98 per cent primary education enrollment. However, as the nation strives to transition from a developing to a middle-income country, there is a critical need to improve education quality and enhance education access in rapidly urbanised cities. The private sector, including institutions like Vinschool, is vital in bridging this gap.

"We are delighted to partner with ADB and other impact focused lenders on this groundbreaking initiative. This investment will enable us to provide high-quality learning opportunities to more students while setting a benchmark for sustainable education in Việt Nam," said Vinschool Chief Executive Officer Phan Hà Thủy.

LEAP 2 is an ADB-managed fund with a $1.5 billion commitment from the Japan International Cooperation Agency (JICA). It focuses on sustainable private sector infrastructure projects that reduce carbon emissions, improve energy efficiency, and provide affordable health care, education, and communication services to ADB’s developing member countries.

Established in 2013, Vinschool is Việt Nam’s largest private school system, serving over 48,000 students across 54 campuses with national and Cambridge bilingual programmes as a subsidiary of Vingroup. — VNS