Financing Vietnam’s first e-bus fleet and EV charging network

Zurich, 23 November 2022 — A responsAbility climate fund for which responsAbility Investments AG acts as investment manager, along with Asian Development Bank (ADB) as mandated lead arranger, Export Finance Australia, the Finnish Fund for Industrial Cooperation and Oesterreichische Entwicklungsbank AG, have provided long-term debt financing amounting to USD 135 million to VinFast Trading and Production Joint Stock Company (VinFast) for manufacturing the first e-bus fleet and electric vehicle (EV) charging station network in Vietnam.

The climate financing package will empower VinFast to upscale its manufacturing of Vietnam’s first fully electric public transport bus fleet and first national EV charging network. The climate financing is certified by the Climate Bonds Initiative, a scientifically based standard for labelling bonds, loans and other debt instruments which contribute to addressing climate change.

ADB led the transaction and provided a USD 20 million loan as well as a USD 28 million concessional financing and grants by ADB managed trust funds. The responsAbility managed climate fund participated as a parallel loan for a USD 17 million facility. Other parallel loans were provided by Export Finance Australia, the Finnish Fund for Industrial Cooperation and Oesterreichische Entwicklungsbank AG for USD 70 million.

Vietnam’s transport sector accounts for 18% of its annual greenhouse gas emissions. Decarbonizing this sector through options like e-mobility, will contribute greatly to the country’s ambition to achieve net zero emissions by 2050. The financing will support Vietnam’s efforts to achieve net-zero greenhouse gas emissions and to expand high-tech manufacturing industries. VinFast will manufacture and sell e-buses to VinBus to operate them as part of the public transport system in Vietnam. Furthermore, VinFast will expand its network of EV charging stations in Vietnam to drive development of EV support systems and grow the EV ecosystem in Vietnam.

Antonia Schaeli, Deputy Head of Direct Investments, Climate Finance at responsAbility: “This transaction with VinFast presents a tangible contribution towards green mass transportation in Vietnam, advancing its transition to a low carbon economy. Together with ADB and co-lenders, we are honoured to support VinFast on its path to implementing smart mobility solutions. We see this as a great example of how our climate finance solutions can provide debt financing across the electric mobility value chain in emerging markets.”