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The package includes USD 100 million from ADB’s ordinary capital resources, USD 20 million from the Canadian Climate and Nature Fund for the Private Sector in Asia, a USD 50 million parallel loan from the Japan International Cooperation Agency, and a USD 80 million syndicated commercial loan from Cathay United Bank, CTBC Bank Singapore branch and Taipei Fubon Commercial Bank.
ADB acted as mandated lead arranger and bookrunner, structuring and syndicating the entire debt package to mobilise private capital into Vietnam’s small and medium-sized enterprise sector.
“This transaction marks an important milestone in ADB’s partnership with BIDV and in promoting climate-smart, inclusive growth in Vietnam’s agriculture sector,” said Shantanu Chakraborty, ADB country director for Vietnam. He said the blended financing and technical assistance would strengthen BIDV’s ability to serve farmers, agribusinesses and women entrepreneurs while supporting a greener and more resilient economy.
Agriculture employs about 45 per cent of Vietnam’s workforce but faces challenges from fragmented production, limited technology adoption and growing climate risks. To achieve its goal of becoming a top 15 global agricultural exporter by 2030, the sector will require investment estimated at nearly USD 100 billion to boost resilience, cut emissions and remain competitive.
The facility will provide sub-loans to agribusinesses involved in sustainable production, climate adaptation and resource efficiency. It will also support BIDV in developing green and inclusive financial products, improving agricultural credit assessment and expanding access to finance for women-owned enterprises in rural areas.
Pham Vu Thien Nga, BIDV executive vice president, said the partnership would help the bank support customers developing sustainable agricultural models while widening access to finance for women and rural businesses, contributing to inclusive and resilient economic growth.
The financing is accompanied by technical assistance to strengthen BIDV’s environmental and risk management capacity. It will enhance skills among staff and clients, including women-owned enterprises, and promote awareness of sustainable agriculture finance. Support from the Women Entrepreneurs Finance Initiative will help develop gender-responsive financial products, introduce sex-disaggregated data systems and assess BIDV’s corporate policies and services.
