Vietnam Development Bank has signed a US$270mn 15-year loan from a group of Asian banks to on-lend to Vietnam Infrastructure Development and Finance Investment (Vidifi).

The loan will be provided by Citibank Japan, Sumitomo Mitsui Banking Corporation, The Sumitomo Trust & Banking, and The Bank of Tokyo-Mitsubishi UFJ, while Nippon Export and Investments Insurance (Nexi) will cover the transaction’s political and commercial risk insurance.

The funds will be used to construct the third and eighth sections of the Hanoi-Hai Phong expressway project in Vietnam − improving the logistics and productivity of more than 200 Japanese companies operating in the area, Nexi says. Hai Phong is the only international port in northern Vietnam, accounting for over 80% of the trade in the region, including Hanoi and Hai Phong.