MUFG Bank signs its first sustainability-linked loan with Angimex-Kitoku

From left to right: Takashi Ryujin, director of Angimex-Kitoku, and Kinoshita Shingo, managing director, head of Ho Chi Minh City Branch, MUFG Vietnam at the signing of the sustainability-linked loan agreement on October 28

The signing ceremony between MUFG and Angimex-Kitoku, which took place on October 28, marked its first in Vietnam's agriculture sector

This bilateral facility marks the first SLL in the agriculture sector for MUFG in Vietnam. The transaction is also a part of MUFG's newly launched “Vietnam Food-X Project”, a strategic initiative to solve agriculture and food issues in Vietnam and Japan through sustainable finance and cross-sector collaboration. The initiative aims to strengthen Vietnam's agrifood ecosystem and serve as a bridge between Japan and Vietnam. It also aims to enhance the wellbeing of the people of both nations by leveraging the networks of MUFG, VietinBank, and other partners.

The SLL will also enable Angimex-Kitoku to implement sustainable rice production practices under Vietnam's “Transforming Rice Value Chain for Climate Resilient and Sustainable Development in the Mekong Delta” (TRVC) programme. Backed by international and local partners, the programme promotes sustainable rice farming practices that reduce greenhouse gas (GHG) emissions and improve economic outcomes for smallholder farmers.

Under the loan structure, financial terms are linked to Angimex-Kitoku's performance in reducing GHG emissions, with the company's efforts independently verified.

Takao Nozaki, regional head of MUFG Vietnam, said, “MUFG is proud to play a part in the transformation of Vietnam's agricultural sector and its food security goals."

Takashi Ryujin, director of Angimex-Kitoku, said, “We are honoured to partner with MUFG through this SLL, which represents a meaningful step forward in our shared vision for a more sustainable and inclusive future. This empowers Angimex-Kitoku to scale up climate-smart rice production while enhancing the livelihoods of smallholder farmers, especially women, who play a central role in the resilience and prosperity of farming households. Together with MUFG, we aim to create lasting, positive change for rural communities and contribute to the long-term development of Vietnam's agricultural sector.”

Senior executives from MUFG Bank, Ho Chi Minh City Branch, and Angimex-Kitoku at the signing ceremony of the SLL agreement on October 28

Mitsubishi UFJ Financial Group, Inc. (MUFG) is one of the world's leading financial groups. Headquartered in Tokyo and with over 360 years of history, MUFG has a global network with approximately 2,000 locations in more than 40 markets. The group has about 150,000 employees and offers services including commercial banking, trust banking, securities, credit cards, consumer finance, asset management, and leasing.

MUFG Bank, Ltd. is Japan's premier bank, with a global network spanning more than 40 markets. Outside of Japan, the bank offers an extensive scope of commercial and investment banking products and services to businesses, governments, and individuals worldwide.

In Asia-Pacific, MUFG has a presence across 18 markets – Australia, Bangladesh, China, Hong Kong, Indonesia, India, South Korea, Laos, Malaysia, Myanmar, New Zealand, Pakistan, Philippines, Singapore, Sri Lanka, Taiwan, Thailand, and Vietnam.

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