ADB Leads $150M Sustainability-Linked Loan to Expand Vinschool’s Education Network in Viet Nam

“This project underscores ADB’s commitment to fostering sustainable development in Viet Nam,” said ADB Country Director for Viet Nam, Shantanu Chakraborty.

In a groundbreaking move to strengthen Viet Nam’s education sector, the Asian Development Bank (ADB) has led and signed a $150 million syndicated sustainability-linked loan with Vinschool Joint Stock Company. This landmark transaction marks ADB’s first private sector investment in Viet Nam’s education sector and the country’s first sustainability-linked loan in education. The financing will facilitate the expansion of the Vinschool education system, creating modern educational facilities for 20,400 students across Hanoi, Ho Chi Minh City (HCMC), and Hung Yen.

Pioneering Sustainable Development in Education

“This project underscores ADB’s commitment to fostering sustainable development in Viet Nam,” said ADB Country Director for Viet Nam, Shantanu Chakraborty. “By supporting the country’s first sustainability-linked loan in the education sector, we aim to enhance educational infrastructure while contributing to the development of new residential hubs.”

As the mandated lead arranger and bookrunner, ADB has structured and syndicated a financing package that includes:

• A $40 million loan from ADB Ordinary Capital Resources.
• A $35 million loan from the Leading Asia’s Private Sector Infrastructure Fund 2 (LEAP 2), administered by ADB.
• $75 million in parallel loans from international partners.

The parallel loans consist of $40 million from ILX, an Amsterdam-based emerging market asset manager, and $35 million from the Emerging Africa & Asia Infrastructure Fund, an infrastructure debt fund established by the Private Infrastructure Development Group and managed by NinetyOne. To ensure alignment with sustainability standards, the loan was validated through a second-party opinion from DNV Business Assurance Vietnam Co., Ltd.

Bridging the Education Gap in Viet Nam

Viet Nam has made remarkable progress in expanding education coverage, boasting an impressive literacy rate of 98% and primary school enrollment of over 98%. However, as the country transitions from a developing to a middle-income economy, the demand for improved education quality and accessibility in rapidly urbanizing cities is becoming increasingly critical. The private sector, including institutions like Vinschool, plays a vital role in addressing this gap by offering high-quality education alongside public sector efforts.

Vinschool, a subsidiary of Vingroup Joint Stock Company, has emerged as the largest private school system in Viet Nam since its establishment in 2013. With a strong focus on academic excellence, the institution serves over 48,000 students across 54 campuses in Hanoi, HCMC, and four other provinces. Vinschool provides both the national curriculum and the internationally recognized Cambridge bilingual program, catering to a diverse student population.

Commitment to ESG and Sustainability

Vinschool CEO Phan Ha Thuy expressed enthusiasm for the collaboration, stating, “We are delighted to partner with ADB and other impact-focused lenders on this transformative initiative. This investment will allow us to extend high-quality learning opportunities to more students while reinforcing our commitment to Environmental, Social, and Governance (ESG) principles. It sets a benchmark for sustainable education in Viet Nam.”

The loan aligns with the sustainability goals of both ADB and Vinschool by supporting green building standards and fostering educational equity. It is structured to encourage measurable improvements in energy efficiency, resource utilization, and educational accessibility, ensuring long-term sustainability in Viet Nam’s urban education landscape.

The Role of LEAP 2 in Infrastructure Development

The investment also highlights the role of LEAP 2, an ADB-managed fund supported by a $1.5 billion commitment from the Japan International Cooperation Agency (JICA). LEAP 2 is dedicated to financing sustainable private sector infrastructure projects across Asia, with a focus on reducing carbon emissions, enhancing energy efficiency, and expanding access to essential services, including education, healthcare, and digital connectivity.

“Investing in education infrastructure is crucial for Viet Nam’s socioeconomic growth,” said a JICA spokesperson. “By backing projects like this, LEAP 2 aims to drive inclusive and sustainable development in ADB’s developing member countries.”

A Step Towards Viet Nam’s Future

This investment marks a significant milestone in Viet Nam’s journey toward a knowledge-driven economy. By leveraging sustainability-linked financing, ADB and its partners are not only enhancing educational facilities but also promoting sustainable urban development. The expansion of Vinschool will contribute to building well-planned educational hubs in key metropolitan areas, supporting the broader vision of creating smart and sustainable cities across the country.

As Viet Nam continues to evolve as a dynamic middle-income nation, investments in education remain a key pillar of its long-term growth strategy. With the backing of international lenders, the Vinschool expansion project is set to empower thousands of students with access to world-class education while paving the way for future sustainable education financing initiatives in the region.