The European Investment Bank (EIB) provided a €150 million loan to the Government of the Socialist Republic of Vietnam with the purpose of part-financing projects that will contribute to the mitigation of climate change.

The Vietnam Climate Change Global Loan was signed by Magdalena Álvarez Arza, Vice-President of the European Investment Bank (EIB), and Mr Truong Chi Trung, Vietnam’s Vice-Minister of Finance in order to provide a €150 million loan for climate change mitigation. The loan is aimed at fostering environmental sustainability and will make long-term financing available for investments that contribute to climate change mitigation through the avoidance, reduction or sequestration of greenhouse gases emissions, by using of renewable energy sources and energy efficiency enhancements, which are priorities for EIB lending. In June 2012, the Council launched free trade negotiations with Vietnam.

The loan will be provided via the Ministry of Finance on behalf of the Government of Vietnam to four state-owned banks for on-lending to small-scale climate change projects. The four banks, among the largest in Vietnam, have the ability to source and manage investment schemes in the energy and industrial sectors. Interested promoters should address their requests to one of the participating banks.

This loan is being provided under the 2011-2013 Climate Change Mandate and is the EIB’s eighth operation in Vietnam, where it started operations in 1996. In particular, this loan is the second loan of its kind in Vietnam, the first being the €100 million Vietnam Climate Change Framework Loan signed in May 2009. The Government of Vietnam highly appreciates all supports from EIB to the development of the country during the years and is willing continuously to receive its remarkable assistance in the future.