Vietcombank, JBIC ink USD-300m renewables funding deal in Vietnam

Vietnamese commercial lender Vietcombank and The Japan Bank for International Cooperation (JBIC) have struck a co-financing deal worth some USD 300 million (EUR 275.6m) to back renewable energy projects in Vietnam.

The loan agreement by the parties was signed on Wednesday, JBIC said in a press statement. The Japanese bank will cover a USD-165-million portion of the overall amount. Its Vietnamese state-owned peer will provide a guarantee for an unspecified portion that will be co-financed by Mizuho Bank Ltd, Joyo Bank Ltd and Shiga Bank Ltd.

Funds from the credit line will be earmarked for the execution of renewable energy projects in Vietnam. The debt capital will be disbursed through Vietcombank’s network.

The funding deal aligns with Vietnam’s national goal to achieve net zero emissions by 2050. According to the local government’s most recent power development plan, which is still in the works, the Asian country’s installed renewable generation capacity is expected to reach 72.2 GW in 2030, making up almost half of its total power capacity, which is projected to stand at 156.4 GW in that year.

(USD 1.0 = EUR 0.919)

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