AFD grants $ 100 million green credit to Vietnam
The offer aims to stimulate the financing of sustainable natural resource projects focused on clean energy
The Investment and Development Bank of Vietnam (BIDV) signed an agreement to receive a US $ 100 million long-term line of credit for environmental protection, climate change response and green growth in the framework for the sustainable use of natural resources and energy from the French Development Agency (AFD). Initiative Finance (SUNREF).
Under this agreement, AFD will also provide technical assistance, worth € 300,000 ($ 366 million), to the Vietnamese bank and its customers.
This loan is the first SUNREF line of credit to be implemented in Vietnam in the form of a concessional loan without government guarantee, specifies Fabrice Richy, AFD Country Director.
The SUNREF initiative was developed by AFD to help financial institutions and their clients boost the financing of sustainable natural resource management projects focused on clean energy.
BIDV’s application of comprehensive international green credit standards has improved credit risk control and operations, notes bank CEO Le Ngoc Lam.
AFD has been present since 1994 in Vietnam, where it has financed more than 90 projects, worth nearly 2.3 billion euros, in the transport, infrastructure, energy and construction sectors. ‘Agriculture.
The agency, whose operations support the implementation of the Paris Agreement, is an international non-profit financial institution operating on behalf of the French government by providing loans and non-repayable grants to organizations and public enterprises. .