The Asian Development Bank (ADB) has arranged a USD 135 million climate change financing package for VinFast Business and Production Joint Stock Company to support the production of public transport electric buses and Vietnam’s first electric vehicle charging station network. The credit package aims to contribute to supporting Vietnam’s goal of achieving net zero greenhouse gas emissions and promoting the development of high-tech manufacturing industries.

This financing includes a seven-year loan of $20 million, a concessional grant of up to $28 million from ADB, and a main loan of $87 million financed by ADB.

The financing package is certified by the Climate Bonds Initiative – a scientific benchmark for the recognition of bonds, loans, and other debt instruments raised for the purpose of addressing change climate.

In this transaction, ADB arranged financing for VinFast with concessional funds from its trust funds, including the Australian Government-led Australian Climate Finance Partnership (ACFP), the Clean Technology Fund CTF and the Climate Innovation and Development Fund, invested by Goldman Sachs and Bloomberg Philanthropies.

ADB also mobilized parallel loans from Export Finance Australia, the Finnish Industrial Cooperation Fund, the Austrian Development Bank (Oesterreichische Entwicklungsbank AG), and responsAbility.

Vehicles account for 18% of annual greenhouse gas emissions in Vietnam. The process of reducing carbon emissions, through solutions such as traveling by electric vehicles, will directly impact Vietnam’s expectation of achieving net zero carbon emissions by 2050.

In addition, the project also includes a $950,000 technical assistance (TA) package from ACFP and CTF, focused on increasing consumer awareness of the economic, environmental, and social impacts of the project to help promote the introduction of green vehicles. The package also helps promote the role of women studying or working in science, technology, and math-related fields.

ADB is committed to building the Asia-Pacific into a prosperous, inclusive, resilient, and sustainable region, while sustaining poverty eradication efforts. Established in 1966, ADB is owned by 68 members with 49 members from the Asia-Pacific region.

VinFast is the first and only automobile enterprise in Vietnam that owns a comprehensive green transport ecosystem, including: a diverse range of electric vehicle products, spanning many segments and product categories from automobiles, electric buses, to electric motorbikes, along with a public electric bus system and a nationwide network of charging stations. In addition to the Vietnamese market, VinFast is also trying to expand its operations on a global scale to join hands with the world to promote the electrification revolution and green transport development.

Source: autodaily.vn