The Asian Development Bank ( ADB ) and Vietnamese state-run bank BIDV have signed a US$250 million syndicated financing package to support sustainable, climate-resilient agriculture and expand financial access for women-owned small and medium-sized enterprises in the country.

The agreement comes as Vietnam aims to become one of the world’s top 15 agricultural exporters by 2030, a milestone that requires an estimated US$100 billion in new investment to bolster climate resilience and reduce carbon emissions.

As the mandated lead arranger and bookrunner of the deal, ADB structured a comprehensive “blended” package to mobilize both private and concessional capital.

The financing includes US$100 million from ADB’s ordinary capital resources and US$20 million from the Canadian Climate and Nature Fund for the Private Sector in Asia ( Canpa ). The package further incorporates a US$50 million syndicated parallel loan from the Japan International Cooperation Agency ( Jica ) alongside an US$80 million commercial loan from Cathay United Bank, CTBC Bank ( Singapore ), and Taipei Fubon Commercial Bank.

Empowering women

The capital will be deployed by Hanoi-headquartered BIDV – the Joint Stock Commercial Bank for Investment and Development of Vietnam – as sub-loans to agribusinesses focusing on sustainable production, climate adaptation, and resource efficiency. A key priority of the initiative is empowering women entrepreneurs who often face significant barriers to credit in rural areas.

ADB country director for Vietnam Shantanu Chakraborty says the transaction marks a major milestone in promoting climate-smart growth by strengthening BIDV’s capacity to serve farmers and agribusinesses while supporting the country’s transition towards a green economy.

The financing is paired with a technical assistance grant from the Women Entrepreneurs Finance Initiative ( We-Fi ), which will enable BIDV to develop gender-responsive financial products and implement sophisticated management information systems.

BIDV executive vice-president Pham Vu Thien Nga says the partnership reinforces her bank’s commitment to advancing Vietnam’s development goals and expanding financial access for women and business owners in rural areas, ultimately contributing to a more inclusive and resilient economy.

Established in 2024, Canpa is a trust fund managed by ADB, supported by a commitment of C$360 million ( US$261 million ) from the Canadian government. The fund builds on the success of the Canadian Climate Fund for the Private Sector in Asia II and its predecessor. Canpa supports private-sector projects in Asia and the Pacific that focus on climate and nature-based solutions while also promoting gender equality.