The European Investment Bank (EIB) is lending EUR 47 million to Metro Cash and Carry Vietnam Limited (Metro Vietnam), a subsidiary of Germany’s Metro AG, to help finance the construction of five wholesale stores. The project forms part of Metro AG’s expansion programme in Vietnam. The stores will be located in Bien Hoa, Binh Duong, Nha Trang, Long Xuyen and Qui Nhon. This is the second EIB loan to Metro Vietnam, as the Bank financed in 2005 part of the current network of the company.
The operation is in line with the EU strategy in Asia, as the project will help modernise the distribution sector in Vietnam, increasing competition and promoting a more efficient use of resources, therefore increasing the efficiency in the Vietnamese economy as a whole.
This Bank loan will support the EU presence in Vietnam, by contributing both to the investment of a European company and to the transfer of technology and know-how; Metro Cash & Carry will provide technical assistance (including training) for improving hygiene and food safety standards, and quality of local fresh food production, packaging, transport and storage, encouraging local producers to produce and process food according to best practice, which are particularly important in tropical environments.
The EIB is extending this loan in the context of the current lending mandate for Asia and Latin America (ALA IV), covering the period 2007-2013. Under this mandate the EIB is authorised to lend up to EUR 3.8 billion for financing operations that support the EU presence in those regions through Foreign Direct Investment, transfer of technology and know-how, or contribute to environmental sustainability.
This is EIB’s sixth operation in Vietnam, since it started operations in 1996.
Background:
The European Investment Bank is the EU’s long-term financing institution promoting European objectives. Set up in 1958, the EIB operates in the 27 EU Member States and more than 130 other countries in Asia and Latin America, the Balkans, the Mediterranean region, Africa, the Caribbean and the Pacific. Lending operations outside the EU are part of the EU’s cooperation policy with third countries.
Since 1993 the Bank has carried out four successive lending mandates for Asia and Latin America. The EUR 3.8 billion regional ceiling of the current Mandate (ALA IV) is broken down into indicative sub-ceilings of EUR 1 billion for Asia and EUR 2.8 billion for Latin America.