Vietnamese electric vehicle maker VinFast said on Monday it has received a $135m (roughly R2,449,662,750) financing package led by the Asian Development Bank (ADB), part of a push by the bank to boost climate-friendly investments in the region.
VinFast, the auto arm of Vietnam's largest conglomerate Vingroup JSC, said last year it planned to raise at least $400m (roughly R7,258,260,000) via its first green loan to fund its manufacturing of electric vehicles.
"The assistance comprises seven year tenor financing, including a $20m (roughly R362,913,000) loan funded by ADB, parallel loans of $87m (roughly R1,578,671,550) facilitated by ADB as mandated lead arranger, and concessional financing of up to $28m (roughly R508,852,960) ," a joint statement by the two organisations said.
Export Finance Australia, the Finnish Fund for Industrial Cooperation, Oesterreichische Entwicklungsbank AG, and responsAbility also participated in the parallel loans, the statement said.
VinFast, which began operations in 2019 and stopped making combustion engine-driven cars in August, is targeting global electric vehicle sales of 750,000 per year by 2026. It is also gearing up to expand in the US market.
Vietnam's transport sector accounts for 18% of the country's greenhouse gas emissions, according to official data.
According to ADB, the funding will also support Vietnam's efforts to achieve net-zero greenhouse gas emissions by 2050.
EV maker VinFast receives $135m in green funding led by ADB
Vietnamese electric vehicle maker VinFast said on Monday it has received a $135m (roughly R2,449,662,750) financing package led by the Asian Development Bank (ADB), part of a push by the bank to boost climate-friendly investments in the region.
VinFast, the auto arm of Vietnam's largest conglomerate Vingroup JSC, said last year it planned to raise at least $400m (roughly R7,258,260,000) via its first green loan to fund its manufacturing of electric vehicles.
"The assistance comprises seven year tenor financing, including a $20m (roughly R362,913,000) loan funded by ADB, parallel loans of $87m (roughly R1,578,671,550) facilitated by ADB as mandated lead arranger, and concessional financing of up to $28m (roughly R508,852,960) ," a joint statement by the two organisations said.
Export Finance Australia, the Finnish Fund for Industrial Cooperation, Oesterreichische Entwicklungsbank AG, and responsAbility also participated in the parallel loans, the statement said.
VinFast, which began operations in 2019 and stopped making combustion engine-driven cars in August, is targeting global electric vehicle sales of 750,000 per year by 2026. It is also gearing up to expand in the US market.
Vietnam's transport sector accounts for 18% of the country's greenhouse gas emissions, according to official data.
According to ADB, the funding will also support Vietnam's efforts to achieve net-zero greenhouse gas emissions by 2050.