RELEASED DATE 27 May 2021
Accordingly, AFD will grant a long-term USD 100 million concessional credit line facility to BIDV as well as providing technical assistance of EUR300,000 to BIDV and its customers.
Mr. Le Ngoc Lam, Chief Executive Officer of BIDV and Mr Fabrice Richy, Director of AFD Vietnam signed the agreement
One of the leading financial institutions in Vietnam, BIDV has long experience in managing foreign entrusted funds and providing modern and comprehensive banking products and services for customers, contributing to effective realisation of the target set by donors and the government of Vietnam. In recent years, BIDV has been trusted and selected by the Government, ministries and donors to relend and serve key and large foreign entrusted funds. In particular, for AFD funds, BIDV has been trusted to implement a number of projects such as the Northern Power Transmission Project worth EUR40 million; housing development program in flood-prone areas in the Mekong Delta worth EUR25 million, among others.
Mr. Le Ngoc Lam, Chief Executive Officer of BIDV stated: “The signing of the USD 100 million SUNREF Green Credit Line Agreement marks an important milestone in the cooperation between BIDV and AFD, which shall be a step forward and pave the way to new partnership opportunities between parties in all development investment sectors. It reaffirms the fact that application of international standards on the green credit will help BIDV to improve its operational efficiency and control strictly credit risks. BIDV is willing to establish partnership with international donors in promoting Vietnam's sustainable economic development”.
Mr Fabrice Richy, Director of AFD Vietnam said: “This credit line to BIDV is the first SUNREF Green Credit Line provided by AFD in Vietnam, in the form of non-sovereign concessional loan. SUNREF is AFD’s green finance label deployed with almost 70 partner banks in 30 countries. AFD hope to continue providing concessional loans and grants to Vietnamese banks and state-owned enterprises to contribute to green growth and climate change’s adaptation in Vietnam.”
Over the past time, recognizing the importance of supporting enterprises to invest in the energy sector, especially renewable energy, energy efficiency, environmental protection, climate change response and green growth, BIDV has focused its resources on this sector and become a pioneer in green credit in Vietnam. The loan scale for the energy area at BIDV has grown constantly during 2017-2020 at the rate of 11.59 percent p.a. Outstanding balance of this sector reached over VND68,000 billion, accounting for 5.78 percent of the bank’s total outstanding balance. As with the growth of the energy sector, BIDV’s loans to renewable energy has grown impressively, accounting for 90 percent of the bank’s energy loan structure.
As well as providing BIDV with a long term fund to finance green and sustainable development, AFD will cooperate with BIDV to optimize the positive social and environmental impacts of the credit line through assisting the formulation of a social and environmental management system, improving risk analysis capacity and sharing experiences in implementing SUNREF in other countries.
Established in 1957, BIDV is the largest commercial bank in Vietnam by total assets and charter capital. By the end of the first quarter 2021, the bank's total assets reached over VND1.56 quadrillion. The bank boasts an extensive network of more than 1,100 domestic and foreign branches and transaction offices. BIDV has established partnerships with 2,300 financial institutions around the globe. BIDV is a reliable choice of major international organizations such as World Bank, ADB, AFD, JICA, NIB, etc., and highly appreciated by reputable international organizations through a series of awards and titles such as: Top 2,000 largest public companies in the world (Forbes), Top 300 most valuable banking brands in the world (Brand Finance) among others.
The French Development Agency (Agence Française de Développement, AFD) Group is a public entity which finances, supports and expedites transitions toward a more just and sustainable world. Active in more than 4,000 projects in the French overseas departments and some 115 countries, AFD teams strive to promote health, education and gender equality, and are working to protect common resources - peace, education, health, biodiversity and a stable climate. AFD has been active in Vietnam since 1994 and has financed more than 90 projects worth almost EUR2.3 billion in various sectors: transport, infrastructure, energy, agriculture, etc. In line with French cooperation priorities in Vietnam, AFD is positioning its operations to support the implementation of the Paris Agreement.
For more information, please contact:
Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV)
Tel: +8424.22205544; Hotline: 19009247
Fanpage: BIDV - Ngân hàng TMCP Đầu tư & Phát triển Việt Nam.