IFC, Techcombank Finance Efficient Energy Facility

The International Finance Corporation (IFC), a member of the World Bank Group, and the Vietnam Technological & Commercial Joint Stock Bank (Techcombank) have reached an agreement under which the former will provide a US$25 million loan for the Vietnamese lender to develop its energy efficiency lending facility, including US$1 million sourced from the Earth Fund.

 

Techcombank is committing another US$25 million to build a total portfolio of US$50 million over the next two years. Techcombank plans to provide long-term financing to support companies, especially small and medium enterprises, in efforts to replace equipment and upgrade technology and systems for greater efficiency, increased productivity, cost saving and emission reduction.

 

IFC’s investment is in line with the government’s national program on energy conservation, which sets targets of achieving annual energy saving equal to 5 to 8 % of total national energy consumption over the 2010-2015 period. 

 

In addition to the loans, IFC also provides advisory services to Techcombank in product development, marketing, staff training, pipeline development, and partnership building with a network of technical service providers. IFC has been a partner of Techcombank since 2003, providing both investment and advisory services.