Gabriel Budi Sutrisno · · 1 min readADB leads $135m financing for EV development in Vietnam
The Asian Development Bank (ADB) has led a US$135 million financing package for Vietnam-based automotive firm VinFast to manufacture the country’s first fully-electric public transport bus fleet and first electric-vehicle charging network.
Photo credit: Vingroup
The climate financing package, certified by the Climate Bonds Initiative, consists of a US$20 million loan from ADB, parallel loans of US$87 million facilitated by the bank, and concessional financing of up to US$28 million.
By using concessional financing, ADB said it has partially offset the project’s risks through its managed trust funds, which are made up of loans from the Australian Climate Finance Partnership (ACFP) and the Clean Technology Fund (CTF) as well as a grant from the Climate Innovation and Development Fund.
Meanwhile, the parallel loans are from Export Finance Australia, the Finnish Fund for Industrial Cooperation, Oesterreichische Entwicklungsbank AG, and ResponsAbility.
ACFP and CTF also provided US$950,000 in technical assistance to raise consumer awareness about the economic, environmental, and social effects of e-mobility. It will also be used to promote the role of women studying for or working in fields of science, tech, and mathematics.
The transport sector accounts for 18% of annual greenhouse gas emissions in Vietnam. The government aims to achieve net zero emissions by 2050.
Editing by Miguel Cordon and Eileen C. Ang
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