French Development Agency finances Vietnam bank $54 mln for climate projects

The French Development Agency (AFD) will provide BIDV, a Vietnamese state-controlled bank, with €50 million ($54.1 million) to finance climate change adaptation and sustainable growth projects.

The two sides have signed a climate credit line agreement for the cooperation, the Vietnamese bank said Friday. The move followed the Sunref Green Credit Line agreement worth $100 million inked between the two entities in May 2021.

In addition to the latest credit line, the AFD will provide technical assistance of €200,000 ($217,746) to BIDV. With the latest cooperation, BIDV customers can access preferential foreign funding for green projects, especially those of climate change adaptation.

The funding is in line with BIDV’s 2021-2025 strategy, with sustainable growth as a critical goal. By mobilizing foreign sources, BIDV has supported its customers in deploying projects with positive environmental impacts. It can also help BIDV reach its target of becoming a “net zero bank” in 2045.

BIDV, listed on the Ho Chi Minh Stock Exchange (HoSE) as BID, earned a post-tax profit of VND6,368.9 billion ($252.6 million) in the second quarter of this year, up 17.36% year-on-year.

In the first half of this year, its post-tax project grew 11.81% year-on-year to VND12,182 billion ($483.1 million). Its net income in the period was VND28,379 billion ($1.13 billion), up 3.26%.