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Overview

BOCOM contributes to $125 million syndicated green credit loan with VPBank for on-lending purposes (Linked to Record ID#90434)

Commitments (Constant USD, 2023)$21,494,454
Commitment Year•2020Country of Activity•Viet NamDirect Recipient Country of Incorporation•Viet NamSector•Banking And Financial ServicesFlow Type•Loan

Status

Project lifecycle

Pipeline: Commitment

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 16, 2020
Last repayment (originally scheduled)
Jan 14, 2025

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Commercial Banks

  • China Bank of Communications (BoCom or BoComm)

Cofinancing agencies

Intergovernmental Organizations

  • International Finance Corporation (IFC)
  • International Investment Bank

Private Sector

  • Hana Bank Co., Ltd. (formerly KEB Hana Bank)

State-owned Commercial Banks

  • Industrial and Commercial Bank of China (ICBC)
  • Kiatnakin Phatra Bank Thailand

Receiving agencies

State-owned Banks

  • Vietnam Prosperity Commercial Joint Stock Bank (VPBank)

Loan description

BOCOM and ICBC contrubution to $212.5 million syndicated green credit loan with VPBank for on-lending purposes

Interest type•UnknownMaturity•5 years

Narrative

Full Description

Project narrative

On January 16, 2020, Vietnam Prosperity Commercial Joint Stock Bank (VPBank) signed a syndicated "Green Credit Loan Contract" worth $212.5 million. The participating organizations were IFC, Bank of Communications of China (BOCOM), Industrial and Commercial Bank of China, KEB Hana Bank of Korea, Bank Kiatnakin Bank Thailand, the Investment Fund of the German Reconstruction Bank, and the International Investment Bank (IIB). This syndicated loan is dispersed as follows: $50 million from IFC; $37.5 million from the Co-financed Portfolio Program (MCPP) managed by IFC and $125 million in syndicated loans from Bank of Communications of China, Industrial and Commercial Bank of China, KEB Hana Bank of Korea, Bank Kiatnakin Bank Thailand, the Investment Fund of the German Reconstruction Bank and the IIB International Investment Bank. Project#ID 90434 captures ICBC's contribution ($20,833,333) and Project#ID 92634 captures BOCOM's contribution. This is the first green syndicated loan transaction in the Vietnam market. The use of a green loan is part of a wider sustainable investment and aims to reduce the impact on the environment of new lending activities. The loan will be used for various climate-friendly projects that have yet to be specified. In addition to the financial assistance provided, VPBank also received technical advice from IFC experts in developing a policy framework on green credit and sustainable financial instruments, setting up a monitoring, management and report on the status of capital use for green projects and will be certified by a reputable international organization. To meet the requirements of the loan, VPBank has invested in training a team of internationally certified green credit experts to assess the green standard of each loan for each climate-focused project that will result from this loan agreement.

Staff comments

1. ICBC and BOCOM's contributions to the $125 million loan are unknown. For the time being, AidData has assumed that each of the 6 members of the syndicate contributed equally ($20,833,333).