JBIC Offers $36M Loan to Fund Office Building Project in Vietnam HCMC

The Japan Bank for International Cooperation (JBIC) signed a lending agreement totaling $36 million for Phuong Nam 3A-1 Real Estate Business and Investment JSC on July 16 to develop an office building in Vietnam’s southern metropolis of Ho Chi Minh City.

The loan, co-financed with Japan-based MUFG Bank, Ltd., will take the total amount to $60 million, JBIC said in a Tuesday statement.

Tokyu Corporation, which holds an indirect investment in Phuong Nam 3A-1, will work with local partner RC Real Estate Development and Finance Corporation (REFICO) and others to develop and operate the office building.

The office building will be located near Ba Son Station on Metro Line No. 1 (Ben Thanh-Suoi Tien), the municipal city's first urban railway project. As one of the few Grade A office buildings in Ho Chi Minh City, the project will contribute to the development of a new international commercial hub.

In Vietnam, Tokyu has formed a joint venture with Becamex IDC Corp. to build urban development projects in Binh Duong New City in the southern province of Binh Duong. The Japanese urban developer has been engaged in urban development projects in Vietnam, Thailand, and Australia.

(VIR, The Investor)