 The financing package will help Vietnam’s ambition to achieve net zero emissions by 2050. (Photo: kinhtedothi.vn) |
ADB reported on Monday that the assistance is for VinFast Trading and Production Joint Stock Company.
The 7-year financing package comprises a 20 million USD loan funded by ADB, parallel loans of 87 million USD facilitated by ADB as mandated lead arranger, and concessional financing of up to 28 million USD.
The financing is certified by the Climate Bonds Initiative, a standard for labeling bonds, loans, and other debt instruments which contribute to addressing climate change.
According to ADB, Vietnam’s transport sector accounts for 18% of the national annual greenhouse gas emissions, and its decarbonization, through options like e-mobility, will directly impact Vietnam’s ambition to achieve net zero emissions by 2050.