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ADB provides loan for Vietnamese schools

The Asian Development Bank has led and signed a USD150 million loan with Vinschool Joint Stock Company.

The Asian Development Bank (ADB) has led and signed a USD150 million syndicated sustainability-linked loan with Vinschool Joint Stock Company. The loan will be used to expand the Vinschool education system, providing educational facilities for 20,400 students in urban areas of Hanoi, HCM City, and Hung Yen.   

“This project marks ADB's first private sector investment in Vietnam's education sector,” said ADB Country Director for Vietnam Shantanu Chakraborty. "By supporting the country’s first sustainability-linked loan in the education sector, we aim to enhance educational infrastructure while contributing to new residential hub development in the country."

As the mandated lead arranger and bookrunner, ADB has syndicated and structured a financing package that includes a USD40 million loan from ADB Ordinary Capital Resources, a USD35 million loan from the Leading Asia’s Private Sector Infrastructure Fund 2 (LEAP 2) administered by ADB, and USD75 million in parallel loans.  

The parallel loans comprise USD40 million from ILX, an Amsterdam-based emerging market asset manager, and USD35 million from the Emerging Africa & Asia Infrastructure Fund, an emerging market infrastructure debt fund established by the Private Infrastructure Development Group and managed by NinetyOne. The loan has been validated through a second-party opinion from DNV Business Assurance Vietnam Co., Ltd.

"We are delighted to partner with ADB and other impact focused lenders on this groundbreaking initiative. This investment will enable us to provide high-quality learning opportunities to more students while setting a benchmark for sustainable education in Vietnam." said Vinschool Chief Executive Officer Phan Ha Thuy. 

 LEAP 2 is an ADB-managed fund with a USD1.5 billion commitment from the Japan International Cooperation Agency. It focuses on sustainable private sector infrastructure projects that reduce carbon emissions, improve energy efficiency, and provide affordable health care, education, and communication services to ADB’s developing member countries.

Established in 2013, Vinschool is the largest private school system in Vietnam, offering education from kindergarten to high school. Vinschool currently serves more than 48,000 students across 54 campuses in Hanoi, HCM City, and four other provinces, offering both national curriculum and Cambridge bilingual programs. 

Source: Dtinews
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