VPBank and JBIC Sign $27 Mn Green Loan for Vietnam Power Transmission Project

The financing is aimed at strengthening the region’s electricity grid and improving its ability to transmit power generated from renewable energy projects, including solar and wind.

$27 Million Financing for Power Grid Development

According to statements from VPBank and the Japan Bank for International Cooperation (JBIC), the loan will be provided to Vietnam Electricity National Power Transmission Corporation (EVNNPT), Vietnam’s national power transmission operator.

JBIC will provide $14 million, while Sumitomo Mitsui Banking Corporation (SMBC) and Joyo Bank will provide the remaining amount. JBIC will also guarantee part of the financing provided by the Japanese banks.

The project is the first to receive financing under a $150 million clean energy credit line established by VPBank and JBIC in 2024.

Funding to Support a 220-kV Transmission Line

The financing will support the construction of a 220-kV power transmission line in southern Vietnam.

The new transmission infrastructure is expected to increase the grid’s capacity to receive electricity from renewable energy projects and transmit it to Vietnam’s national power system.

Southern Vietnam has experienced rapid growth in renewable power generation, while transmission infrastructure has faced capacity constraints in some areas. Improving the transmission network can help reduce congestion and support the integration of additional renewable electricity into the grid.

VPBank’s Role in Vietnam’s Energy Transition

Kamijo Hiroki, Deputy Chief Executive Officer of VPBank, said the financing reflects the bank’s role in connecting international capital with infrastructure projects supporting Vietnam’s energy transition and grid modernization.

The project also represents cooperation between Vietnamese and Japanese financial institutions in supporting clean-energy infrastructure.

About VPBank

Vietnam Prosperity Joint Stock Commercial Bank (VPBank) is a Vietnamese commercial bank providing banking and financial services to individuals and businesses. The bank is also involved in financing projects connected with Vietnam’s economic and infrastructure development.

About JBIC

Japan Bank for International Cooperation (JBIC) is Japan’s policy-based financial institution. It provides financing and other financial support for projects that contribute to Japan’s economic interests and international cooperation, including energy and infrastructure projects.

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