EIB offers loan for Vietnam’s climate change mitigation

The European Investment Bank (EIB) is providing a loan of 150 million euros to Vietnam with the purpose of part-financing projects that will contribute to the mitigation of climate change.
The loan agreement was signed in Hanoi on Wednesday by Vice President of the EIB Magdalena Álvarez Arza and Deputy Minister of Finance Truong Chi Trung in the presence of State President Truong Tan Sang and President of the European Council Herman van Rompuy.

The loan will contribute to environmental sustainability and will make long-term financing available for investments that contribute to climate change mitigation through the avoidance or reduction of emissions of greenhouse gases.

Representatives of EIB and the Ministry of Finance sign the loan agreement in Hanoi - Photo: Courtesy of Vietinbank

The loan will be provided through the Ministry of Finance to four state-owned banks for on-lending to small-scale climate change projects. The four state-owned banks, among the largest in Vietnam, have the ability to source and manage investment schemes in the energy and industrial sectors.

Interested promoters should address their requests to any of the participating banks, namely Bank for Investment and Development of Vietnam (BIDV), Vietnam Bank for Industry and Trade (Vietinbank), Bank for Agriculture and Rural Development (Agribank) and Vietnam Development Bank (VDB).

This is the second loan of its kind in Vietnam, the first one being the Vietnam Climate Change Framework Loan worth 100 million euros signed in May 2009 for financing investments that contributed to the mitigation of climate change, which has been implemented successfully by both sides.

This loan is provided under the Climate Change Mandate 2011-2013 and is the EIB’s eighth operation in Vietnam, where it started operations in 1996. Since then, EIB financing in Vietnam has reached almost 650 million euros, including this loan.


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